Airtime, a video communications startup founded by Evernote creator Phil Libin, recently laid off nearly half its workforce, the company has confirmed. Of the 58 current team members, 25 have been let go, an unusually large reduction under the company’s distinct employment model.
Airtime, initially launched in 2020 as “mmhmm” during the sudden shift to remote work, offers virtual meeting tools designed to enhance online presentations. Among these products are “Airtime Creator,” allowing users to display themselves and their presentations simultaneously, and “Airtime Camera,” used for creating tailored video appearances in meetings.
Introduced in late 2022, Airtime’s unique “seasonal” employment model structures employee tenure into discrete periods of approximately five-and-a-half months each, separated by short breaks. At the close of each season, management evaluates team composition based on strategic needs for upcoming goals and product shifts, inviting certain staff members to return for the next season. This approach was initially created to provide employees ample advance notice in case they were not being invited back, thus avoiding sudden layoffs and offering them time to prepare for job transitions.
However, according to internal sources, this latest round of cuts took staff by surprise, as management had previously assured teams earlier this year there would be no near-term reductions. Employees say they expected the current season to formally end on June 30, and were shocked when told their employment would instead conclude on June 6, significantly ahead of schedule. While severance will reportedly cover at least part of the remainder of the expected seasonal term, Airtime declined to comment directly on severance terms.
Sources familiar with the decision-making process report that discussions about layoffs occurred during lengthy leadership meetings at Nobu restaurant in Palo Alto. Managers were informed the night before the wider announcement, while affected employees were notified the following day. The company did not disclose how many contractors were also impacted.
Insiders suggest a mismatch between Airtime’s projected growth and actual product adoption was a key driver behind the cuts. Reportedly, the company has struggled with high monthly user-acquisition costs, sluggish product uptake, and user retention challenges. Employees have also noted founder Phil Libin’s frequent absence from day-to-day oversight, attributing it to Libin devoting substantial attention to his restaurant venture in Arkansas.
However, in an official statement, the company attributed this larger-than-usual restructuring to a significant shift in their strategic focus. Airtime underscored the regularity of seasonal transitions, and stated clearly that the recent staffing decisions reflect a deliberate reorientation towards new products and partnerships. According to Airtime, a core team of 33 employees will be returning following this reorganization.
To date, Airtime has raised approximately $235 million in venture capital across multiple funding rounds. Portions of these funds were applied toward company acquisitions, including the filter-maker Memix in 2020 and the reactions firm Macro in 2021, primarily aimed at bolstering its product and technology expertise.
Despite its acquisitions and innovative seasonal workforce model, the startup has struggled to achieve steady traction and consumer adoption, ultimately prompting the latest round of staffing changes.
