Airtime Layoffs 2025: What’s Happening at Phil Libin’s Video Startup?
If you’re searching for the latest news on Airtime layoffs or want to understand why Phil Libin’s video startup is cutting staff in 2025, you’re not alone. Many are asking: Why is Airtime laying off employees? How significant are these layoffs? And what does it mean for the future of this once-promising video meeting tool? In June 2025, Airtime confirmed it laid off 25 people — nearly half its 58-person team — marking one of the largest reductions in the company’s history. This sudden move has raised questions about the startup’s funding, growth strategy, and overall stability.
Airtime, founded by Phil Libin, the creator of Evernote, first launched in 2020 under the name mmhmm, targeting the surge in video communication fueled by the pandemic. Its innovative tools, such as Airtime Creator, which allows users to present slides while appearing on screen, and Airtime Camera, which customizes meeting appearances, positioned the startup as a unique player in the crowded video conferencing market. However, despite its creative approach and a strong initial valuation, Airtime has faced challenges in securing sustained growth and funding, leading to these recent layoffs.
This latest round of job cuts—described internally as "bigger than usual"—comes as a surprise to many employees who expected a fundraising round this year and were previously assured that no layoffs were planned. Airtime’s layoff approach is based on a "seasonal employment" model introduced in late 2022, designed to provide transparency and avoid sudden firings. Under this system, employees work in six-month "seasons," with rehiring decisions made at the end of each period. While this plan aimed to reduce uncertainty for staff, the size and timing of this round have still caught many off guard.
Understanding Airtime’s current situation requires a look at its history. After Evernote's peak valuation of nearly a billion dollars, Libin’s new venture sought to replicate success in the video collaboration space. However, Airtime's growth was capped by efforts to find product-market fit, and earlier layoffs had already trimmed staff to around 100 before this recent reduction. The company’s decision to tighten its headcount now reflects a strategic shift, possibly influenced by market pressures and the evolving demands of remote work tools.
For users and investors watching Airtime, these layoffs signal critical questions about the startup’s path forward. Will Airtime secure new funding to innovate further and compete with major players like Zoom and Microsoft Teams? Or is this a sign of deeper struggles that could impact its long-term viability? Keeping an eye on Airtime’s next moves is essential for anyone interested in the future of video communication technology.
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