Airtime, the video startup from Evernote’s founder Phil Libin, has laid off dozens of workers, TechCrunch has discovered, and Airtime confirmed.
In accordance with the corporate, 25 folks have been let go from the 58-person group — a change Airtime described as “bigger than usual.”
Whereas Airtime characterizes the departures as a part of its typical seasonal method to employment, sources inside the corporate mentioned employees have been stunned by the announcement. Many have been beneath the impression the startup meant to lift funds this 12 months and have been beforehand advised no cuts have been deliberate, they mentioned.
Previously referred to as mmhmm, Airtime was launched in 2020 by Libin, whose Evernote, a note-taking startup, was valued at practically a billion at its top earlier than being sidelined by newer opponents like Notion. (The corporate later offered to Bending Spoons in 2022 for a decidedly smaller determine.)
First launched amid the COVID pandemic, when all workplace work had instantly shifted to video, Airtime at this time presents two key instruments for on-line conferences. Its “AirTime Creator” lets customers current a deck whereas showing on display screen on the identical time, whereas its “AirTime Camera” permits customers to create customized seems to be to face out in conferences.
The startup launched a “seasons”-focused employment construction in late 2022, following a layoff of round 10%-15% of the employees, which had capped the corporate’s headcount at 100 whereas it looked for product-market match.
The concept was launched so employees wouldn’t face any shock firings or layoffs. As an alternative, the corporate would determine roughly each six months who can be invited again for the following “season.” This plan allowed Airtime to present employees an extended heads-up in the event that they weren’t going to return, so they’d time to hunt different employment. And ideally, workers would work all through a full season earlier than selecting to stop.
Such a construction, as you may think about, was controversial. However till now, the deal had been honored on each ends.
The current layoffs have pissed off employees as a result of, sometimes, their “season” would have ended on the final day of June, in accordance with what their managers advised them. However impacted workers have been given an finish date of Friday, June 6. Meaning their severance covers at the very least a few of what would have usually been provided in the event that they have been employed via the interval they have been promised beneath the “seasons” association.
Airtime declined to reply to questions on severance.
The layoffs themselves have been hashed out by management over two 8-hour classes at Nobu in Palo Alto, sources declare. Workers have been advised on Tuesday, June 3, whereas their managers have been advised the night time prior.
An unknown variety of impartial contractors have been additionally let go, they mentioned.
As to what necessitated the cuts, firm insiders mentioned Airtime’s product by no means actually took off and skilled fairly a little bit of churn. Consumer acquisition advert spend additionally value Airtime excessive tens of hundreds of {dollars} monthly, and workers report that Libin was typically absent from day-to-day choices as he centered his consideration on his restaurant in Arkansas.
Airtime, in the meantime, mentioned the bigger cuts needed to do with the corporate’s altering focus.
In an emailed assertion attributed to Libin, Airtime mentioned the next:
“Since 2022, Airtime has operated on a ‘seasonal’ structure: two five-and-a-half-month work seasons per year, with a shared two-week break in between. Near the end of each season, we decide who comes back based on plans for the following season. The company invites some people back, and they decide whether they want to return. There’s a mutual commitment that people who return will not leave mid-season and that the company won’t terminate anyone mid-season other than for serious misbehavior. We treat everyone who departs at the end of a season equally, whether or not they were invited back. Product releases, hiring, departures, promotions, and other events are also timed around the seasons to provide people with a predictable cadence. We’re currently in our sixth seasonal transition, and we’ve made changes to the team every time. 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.”
Thus far, Airtime has raised practically $235 million in enterprise funding throughout a number of early-stage rounds.
A few of these funds have been used for M&A, as with the deal to purchase filter-maker Mexmix in 2020, then purchase Macro, a maker of filters and reactions for on-line conferences, in 2021. The latter deal was centered on bringing in founders with product chops, Ankith Harathi and John Keck. (The pair has since left Airtime, in accordance with their LinkedIn profiles.) Airtime father or mother All Turtles additionally introduced in Alexander Pashintsev, who beforehand labored on AI at Evernote, however Airtime itself has not but made a major AI push.
Sarah Perez may be reached at [email protected] and @sarahperez.01 on Sign. TechCrunch additionally presents safe tip traces right here.
