Atmosphere has made a big business out of streaming viral videos to screens at restaurants, bars and many other places. And just last year it raised a $65 million series D funding round led by Sageview Capital, Valor Equity Partners and S3 Ventures. Its valuation at the time was more than $1 billion.
But its momentum appears to be fading.
The Austin-based startup, legally known as Rarefied Atmosphere Inc. and led by CEO Blake Sabatinelli, said this week that it plans to lay off more than 100 employees — marking its third round of job cuts in the last few years.
In a May 13 letter to the Texas Workforce Commission, Atmosphere's chief human resources officer, Nicole LaFlamme, said that the layoffs at the company's headquarters at 2043 S. Lamar Blvd. are expected to be permanent. The company listed 106 jobs being eliminated. That includes at least 14 customer success and support team members, as well as several account managers, software engineers, copywriters, editors and a variety of producers.
Atmosphere couldn't immediately be reached for comment.
In December 2023, less than a year after its big funding round, the company laid off a significant part of its workforce, though a final figure wasn't revealed.
Several former employees have already taken to LinkedIn to share the news and to let potential employers know that they're available for new roles.
"This is my first time experiencing the corporate world of layoffs, and while this couldn't have come at a worse time for me and my family (baby boy coming soon!), I'm reflecting on my time at Atmosphere and I have to say, I'm very grateful for the experience I had," one senior customer support manager wrote on May 15.
Others also noted that they're available to help their fellow impacted employees.
"My heart goes out to everyone impacted by this change, and those who are still feeling the aftermath of the last 2 rounds of layoffs. I am here to offer any assistance and support that I can," a client support team member wrote.
And some in the tech community put up their virtual "now hiring" signs via social media.
"Friends affected by the most recent round of Atmosphere layoffs, ZenBusiness is hiring for sales positions!" a former Atmosphere employee who is now with ZenBusiness wrote.
In February 2023, Atmosphere said it had 547 total employees, counting its Austin location and remote workers. In March 2023, the company reported having 384 Austin-area employees, according to ABJ research. It wasn't clear how many total employees, including those operating remotely, it had at that time.
ABJ reported last year that the company was seeking a subtenant at its headquarters.
While Atmosphere is in the midst of another round of layoffs, it also has three jobs posted on its site, including a business development role in Austin and other positions in Denver and New York.
Atmosphere's layoffs come amidst a wave of workforce reductions for Austin companies.
Earlier this week, job search company Indeed Inc. said it would lay off about 1,000 employees, or about 8% of its global workforce, although the impact on its Austin operations is unclear. And in the past month or two, several other companies have been cutting back. That includes about 2,700 layoffs at Tesla, as well as 96 at game maker Arkane Studios, 84 at Expedia and more than 130 at Rooster Teeth.
