Airtime, the video startup for Evernote founder Phil Libin, has fired dozens of employees, TechCrunch has learned, and Airtime has confirmed.
According to the company, 25 people have been let go of the 58-person team. This is the broadcast time for a change called “larger than normal.”
Airtime characterizes the departure as part of a typical seasonal approach to employment, but sources within the company said staff were surprised by the announcement. Many have been given the impression that the startups were meant to raise money this year, and they said they were told that no cuts were planned previously.
AirTime, formerly known as MMHMM, was launched by Libin in 2020. Libin received a valuation of about $1 billion at its height before note-taking startup Evernote was sidelined by new competitors like Notion. (The company was later sold to spoon bending in 2022, apparently due to small numbers.)
When first launched in Covid Pandemic, and all office work suddenly shifts to video, Airtime Today offers two important tools for online meetings. “Airtime Creator” allows users to present their decks while simultaneously appearing on the screen, while “Airtime Camera” allows users to create a custom look that stands out in meetings.
The startup introduced a “season”-focused employment structure in late 2022. This followed a layoff of about 10%-15% of staff who rounded out the company’s staff at 100 while searching for fits in the product market.
This idea was introduced so that staff would not face surprise firing or layoffs. Instead, the company decides about every six months when invited to the next “season.” This plan allowed Airtime to offer longer head-ups if staff didn’t return, and therefore had time to seek other jobs. And ideally, employees will work throughout the full season before choosing to quit.
As you can imagine, such a structure was controversial. However, the deal has been recognized on both ends since its launch.
Staff have been unhappy with recent layoffs. Because their “season” usually ended on the last day of June. However, affected employees are given a closing date of Friday, June 6th. That is, retirement benefits cover at least some of the things that are normally offered if employed during the period promised in a “seasonal” arrangement.
However, Libin says people’s departure dates are different. Some stay for an extra two weeks before it finishes, while others leave early. And since everyone has been resigned for six weeks from their last day, the issue here can be employee confusion or misunderstanding.
The layoff itself was hashed by leadership in two eight-hour sessions at Palo Alto’s Nobu, sources claim. Staff were told on Tuesday, June 3rd that the manager was told the night before.
They said.
Regarding what requires a cut, the company insider said that Airtime products have never actually taken off and experienced a significant amount of churn. User ads cost of acquiring users is tens of thousands of dollars per month, and employees have focused on Arkansas restaurants, which often leads Libin to their daily decisions.
Meanwhile, airtime said that the larger cuts have to do with changing company focus.
In an email statement arising from Libin, Airtime said:
Since 2022, airtimes have been operating in a “seasonal” structure. Two five-month working seasons a year share two week breaks. Near the end of each season, decide who will return based on plans for the next season. The company invites some people and they decide whether to come back or not. Those returning will not leave the mid-season, and the company has a mutual commitment that no one will finish during the season other than serious fraud. We treat everyone who leaves at the end of the season, whether invited or not. Product releases, employment, departures, promotions and other events are also timed to provide predictable cadences for each season. We are currently in our sixth seasonal transition and we make changes to our team every time. This change is greater than normal, as our focus has changed significantly. Of the 58 employees, 33 have asked to return next season to work on new products and partnerships.
So far, Airtime has raised nearly $135 million in venture capital in several early stages.
Some of these funds were used for M&A, as well as contracts to acquire filter maker Memix in 2020, and in 2021, they acquired Macro, the maker of online meeting filters and reactions. (The pair then left airtime, according to LinkedIn profiles.) Airtime’s parents also brought in Alexander Pashintsev, who previously worked in AI at Evernote, but Airtime itself hasn’t yet made any important AI pushes.
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Fixed: Airtime raised $135 million instead of $235 million. The typo was corrected after publication. Additional information regarding retirement has also been added.