Airtime, the video startup from Evernote’s founder Phil Libin, has laid off dozens of workers, TechCrunch has discovered, and Airtime confirmed.

In response to the corporate, 25 folks have been let go from the 58-person workforce — a change Airtime described as “greater than typical.”

Whereas Airtime characterizes the departures as a part of its typical seasonal strategy to employment, sources inside the corporate mentioned workers have been shocked by the announcement. Many have been below the impression the startup supposed to boost funds this yr and have been beforehand instructed no cuts have been deliberate, they mentioned.

Formerly known as mmhmm, Airtime was launched in 2020 by Libin, whose Evernote, a note-taking startup, was valued at almost a billion at its top earlier than being sidelined by newer rivals like Notion. (The corporate later sold to Bending Spoons in 2022 for a decidedly smaller determine.)

First launched amid the COVID pandemic, when all workplace work had abruptly shifted to video, Airtime as we speak 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 face out in conferences.

The startup launched a “seasons”-focused employment construction in late 2022, following a layoff of round 10%-15% of the workers, which had capped the corporate’s headcount at 100 whereas it looked for product-market match.

The concept was launched so workers wouldn’t face any shock firings or layoffs. As a substitute, the corporate would resolve roughly each six months who can be invited again for the following “season.” This plan allowed Airtime to present workers an extended heads-up in the event that they weren’t going to return, so that they had time to hunt different employment. And ideally, workers would work all through a full season earlier than selecting to give up.

Such a construction, as you possibly can think about, was controversial. However till now, the deal had been honored on each ends.

The current layoffs have annoyed workers as a result of, sometimes, their “season” would have ended on the final day of June, in line with what their managers instructed 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 by way of the interval they have been promised below the “seasons” association.

Airtime declined to reply to questions on severance.

The layoffs themselves have been hashed out by management over two 8-hour periods at Nobu in Palo Alto, sources declare. Employees have been instructed on Tuesday, June 3, whereas their managers have been instructed 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. Person acquisition advert spend additionally value Airtime excessive tens of hundreds of {dollars} per thirty days, and workers report that Libin was typically absent from day-to-day choices as he focused his attention 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’ construction: two five-and-a-half-month work seasons per yr, with a shared two-week break in between. Close to the tip of every season, we resolve who comes again based mostly on plans for the next season. The corporate invitations some folks again, they usually resolve whether or not they wish to return. There’s a mutual dedication that individuals who return won’t go away mid-season and that the corporate gained’t terminate anybody mid-season apart from for critical misbehavior. We deal with everybody who departs on the finish of a season equally, whether or not or not they have been invited again. Product releases, hiring, departures, promotions, and different occasions are additionally timed across the seasons to supply folks with a predictable cadence. We’re at the moment in our sixth seasonal transition, and we’ve made modifications to the workforce each time. This alteration is greater than typical as a result of our focus modified greater than typical. Of 58 workers, we’ve requested 33 to return again subsequent season to work on our new merchandise and partnerships.”

So far, Airtime has raised almost $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 acquire filter-maker Mexmix in 2020, then acquire Macro, a maker of filters and reactions for online meetings, 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 line with their LinkedIn profiles.) Airtime guardian All Turtles additionally introduced in Alexander Pashintsev, who beforehand labored on AI at Evernote, however Airtime itself has not but made a big AI push.

Sarah Perez might be reached at [email protected] and @sarahperez.01 on Sign. TechCrunch additionally presents safe tip strains here.