Airtime Announces Layoffs, Impacting 25 Employees
Airtime, the video startup founded by Evernote creator Phil Libin, has laid off 25 employees, reducing its workforce from 58 to 33. The company confirmed the layoffs, characterizing them as part of its "seasonal" employment approach.
"Seasonal" Employment Structure Raises Concerns
Airtime implemented its "seasonal" employment structure in late 2022 after a previous round of layoffs. This structure involves evaluating staff every six months to determine who will be invited back for the next "season." While intended to provide predictability, the recent layoffs reportedly surprised some employees who expected to remain through June.
According to inside sources, employees were informed of the layoffs on June 3rd, with managers receiving prior notification. The layoffs reportedly followed two eight-hour leadership meetings. An unspecified number of contractors were also let go.
Shifting Focus and Product Challenges
Airtime attributes the layoffs to a shift in company focus and the development of new products and partnerships. However, sources suggest the company's products, Airtime Creator and Airtime Camera, struggled with user acquisition and high advertising costs. Some employees also reported Libin's limited involvement in day-to-day operations due to his focus on a restaurant venture.
"Since 2022, Airtime has operated on a 'seasonal' structure... This change is bigger than usual because our focus changed more than usual. Of 58 employees, we’ve asked 33 to come back next season to work on our new products and partnerships." - Phil Libin, Airtime
Airtime's Funding and Acquisitions
Airtime has raised nearly $235 million in venture funding. The company previously acquired filter-maker Memix in 2020 and Macro, another filter and reactions company, in 2021. These acquisitions aimed to enhance Airtime's video meeting tools.
The company's future direction and the impact of these layoffs on its product development remain to be seen.
