Austin-based viral TV content company Atmosphere laid off a significant part of its team this week as it eyes its 2024 goals.
The company, led by CEO Blake Sabatinelli, didn't respond to specific questions about how many of its employees are being cut, but the company issued a statement to Austin Inno Wednesday evening, saying it's among many companies that have to reconsider operational needs.
"During our most recent evaluations, we determined that the shape and size of our company needed to change, and that unfortunately resulted in some tough decisions," the company's statement read. "We deeply appreciate the contributions of all affected team members and are committed to supporting them during this transition. These changes are crucial as we position ourselves for continued success in 2024. We are confident that this reorganization will strengthen our ability to serve our customers and foster long-term growth."
At least a dozen former employees posted to LinkedIn with the #OpenToWork hashtag, most of whom said they were told this week that they're being laid off from Atmosphere. As of February, Atmosphere employed 547 total, according to past Austin Business Journal reporting.
"I was unfortunately affected by a second round of mass layoffs at Atmosphere," a member of the marketing team posted. "Although the news is disappointing, I am very excited for this next chapter in my career."
Most of the employees sounded upbeat and ready for a new path forward, though no one can gauge how the layoffs might be impacting folks privately.
"Yesterday as I walked into the office with my usual cup of coffee, I was regrettably faced with an email — some might say THE email — stating that myself as well as so many of my incredibly talented colleagues are a part of the 2nd wave of layoffs for Atmosphere," an account executive posted. "I don’t take this as something to mourn. Instead, I am faced with realizing just how special and thankful I feel for being able to be a part of such an awesome team of FRIENDS that I got to work with for a year and almost a half."
The layoffs mark a significant turn for the streaming television startup seen in bars and waiting rooms around the country.
In February, it landed a $65 million series D funding round led by Sageview Capital, Valor Equity Partners and S3 Ventures. At the time, the company had been valued at $1 billion.
In June, a year and a half after signing a 10-year lease, Atmosphere put a 30,646-square-foot chunk of its South Austin headquarters up for sublease but didn't otherwise comment on the move.
The news comes amid a wave of layoffs heading into the holiday season and new year.
On Wednesday, VMWare Inc. told state regulators about its plan to lay off 577 people. And a total of 1,144 tech companies have had layoffs reported through the media or regulatory notices this year, according to Layoffs.FYI, which crowdsources verified layoffs in the the tech and startup sectors. Those moves have impacted 256,411 employees this year, including some based outside of the U.S.
And last week Cognizant Technology Solutions Corp. disclosed plans to dismiss 65 people at the Apple Inc. campus in North Austin.
