Airmeet, a domestic virtual events platform, has recently undertaken a significant workforce reduction, reportedly affecting approximately 30 percent of its employees.
The layoffs have impacted multiple departments, including sales, marketing, technology, and operations, across the company’s operations in India, the United States, and Europe.
Sequoia Capital-backed Airmeet raised $35 million in its Series B funding round from Prosus Ventures and Sistema Asia Fund.
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The platform offers a unique online meeting and event hosting experience, allowing participants to engage with other attendees in virtual interactions.
In an internal email to employees, Airmeet CEO Lalit Mangal outlined the reasons behind the job cuts.
Mangal cited reduced marketing budgets and the rapid commoditization of the virtual event category as key factors influencing the decision.
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He said: “With drastically reduced marketing budgets everywhere and rapid commoditization of the virtual event category, our steadfast execution is not yielding the needed outcomes for retaining a healthy financial state.”
He emphasized the company’s objective is to become lean and agile, focusing on building a new future for digital engagement in communities and corporations.
To support the affected employees, Airmeet has offered two months’ salary as severance pay for its India-based workforce.
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Additionally, the vesting of all employee stock options (ESOPs) will be accelerated until June 30. Health insurance coverage will also be extended until August 18 for impacted employees in India.
For those in the United States, Airmeet will provide severance pay in compliance with local regulations.
The global IT industry has faced significant challenges in 2023, with nearly 200,000 job cuts reported thus far.
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This trend has affected numerous technology giants, including Google, Microsoft, Amazon, Facebook, IBM, HP, Dell, and others.
As companies navigate the evolving landscape, cost optimization and adapting to market conditions have become critical aspects of ensuring financial stability.
