Communication tech firm Zoom joins layoff spree, cuts 1,300 jobs
Zoom video communications announced that it is laying off 15 per cent of its workforce, nearly 1,300 people, to 'weather the economic environment.' In a company-wide email, Zoom CEO Eric Yuan apologised for the mistakes that led to the layoffs.
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FollowZoom Video Communication will lay off 1,300 employees, or 15 per cent of its workforce, announced its CEO Eric Yuan via the company's official blog on Tuesday. Yuan described the impacted individuals as 'hardworking, talented colleagues' and said they would receive an email if they were based in the US, and all non-US staff would be informed following local regulations.
In his statement, Yuan said, "You will receive an email in the next 30 minutes with the subject [IMPACTED] Departing Zoom: What You Need to Know; if you are a US-based employee. Notification of non-US employees will be made according to local regulations.
He stressed the exit plan for departing staff in the United States. Laid-off employees would be offered up to 16 weeks of salary and healthcare coverage, payment of an earned fiscal 2023 annual bonus based on company performance, RSU (restricted stock units), and stock option vesting for six months for US employees and through August 9, 2023, for non-US employees.Â
Yuan said that the layoffs would affect every organisation inside Zoom, while he himself would accept a 98 per cent pay cut. He informed staff that members of the executive leadership team would have their base salary reduced by 20 per cent and their corporate bonuses for 2023 forfeited.
According to Bloomberg, Yuan's base income was $301,731 last year, but his total compensation was $1.1 million. The Zoom CEO's new remuneration for 2023 would be $6,034.62 after the 98 per cent pay cut.
With the announcement of layoffs, Zoom joined a lengthy list of IT companies that have slashed their workforce following the slowdown in business during the COVID-19 outbreak, which forced individuals to work from home. This resulted in global demand for communications software and services, prompting many businesses to hire more people. Many companies are now reducing their workforce as Covid numbers are down across the globe, and huge corporations are phasing out work-from-home options.
"People and businesses continue to rely on Zoom as the world transitions to post-pandemic life. But, given the global economy's uncertainty and its impact on our consumers, we must take a hard, but necessary, look inward to reset ourselves to weather the economic environment, deliver for our customers, and achieve Zoom's long-term ambition," he concluded.Â
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