Airtime Startup Lays Off Nearly Half Its Workforce Amid Shift

Airtime, a video startup founded by Evernote’s Phil Libin, recently laid off 25 employees from its 58-person team, a move described as "bigger than usual." This significant reduction surprised many staff, who were under the impression that no cuts were planned and that the company intended to raise funds this year.

Originally launched in 2020 under the name mmhmm, Airtime offers tools for enhancing online meetings, including Airtime Creator for presenting decks alongside on-screen appearances and Airtime Camera for custom user looks. The startup was born amid the COVID-19 pandemic’s shift to remote work but has struggled to gain lasting traction.

In late 2022, Airtime introduced a "seasonal" employment model, dividing the year into two work seasons of five and a half months each, separated by a two-week break. This approach aimed to provide predictability and reduce surprise layoffs by deciding every six months which employees would be invited back for the next season.

However, the recent layoffs occurred earlier than expected, with affected employees given an end date of June 6, rather than the season’s official end later that month. Airtime clarified that departure dates vary and that all departing employees receive six weeks of severance, but some confusion and frustration remain among staff.

Sources indicate that Airtime’s product failed to achieve strong market traction, experiencing significant user churn. High monthly user acquisition costs and leadership’s divided focus—Phil Libin reportedly spent considerable time on his restaurant business—contributed to challenges.

Airtime’s leadership attributes the layoffs to a strategic shift toward new products and partnerships. Of the 58 employees, 33 were invited back for the next season. The company has raised approximately $135 million in venture funding and made acquisitions to enhance its product capabilities, though key hires have since departed.

Airtime’s seasonal employment model is designed to provide a predictable cadence for hiring, promotions, and departures, but the recent early layoffs highlight the tension between startup agility and employee expectations. This case underscores the challenges startups face in balancing innovation, funding, and workforce stability.

For startups and tech companies, Airtime’s experience offers a cautionary tale about the risks of product-market fit struggles, the importance of transparent communication with staff, and the need to align leadership focus with company priorities to sustain growth.