It’s layoff ‘season’ at Phil Libin’s Airtime

Airtime, the video communication startup founded by Phil Libin, known for his role in Evernote, has recently confirmed significant layoffs, affecting 25 of its 58 employees. While the company described these departures as part of its seasonal employment strategy, many within the organization were taken aback, having expected a funding round this year with no prior indication of impending job cuts. Previously named mmhmm, Airtime was established in 2020, during a time when virtual meetings surged due to the pandemic. The startup offers tools like 'AirTime Creator' for seamless presentations and 'AirTime Camera' for personalized video appearances. In late 2022, Airtime implemented a 'seasonal' employment model after a previous round of layoffs, aiming to provide employees with clarity regarding their job security. However, the recent layoffs have stirred frustration among staff, as many believed their current season would conclude at the end of June. Instead, affected employees have been informed that their last working day will be June 6. Concerns have arisen over the severance packages being offered, particularly as Airtime has not commented on this issue. Reports suggest that the decision to downsize was made during lengthy leadership meetings and that a number of independent contractors were also let go. Insiders indicate that Airtime's product struggled to gain traction, leading to high costs in user acquisition. Although Libin has been noted for his absence in everyday operations, focusing on his restaurant business in Arkansas, Airtime insists that the layoffs relate to a shift in the company's focus. In a statement attributed to Libin, the company emphasized its commitment to a structured seasonal approach, which has seen changes to the team at each transition. Currently, Airtime has raised approximately $235 million in venture capital, with some funds allocated for acquisitions in the past. However, the company has yet to make significant advancements in AI, despite bringing in talent from the tech sector. The upcoming season will see 33 employees invited back to work on new projects and partnerships, according to the company’s plans.