Zoom, the popular video conferencing platform that rose to fame during the Covid pandemic’s remote work surge, is set to lay off 1,300 employees, or approximately 15 per cent of its workforce. The company’s decision comes amid a recent slowdown in user growth and profits.
Zoom’s CEO Eric Yuan said the layoffs and pay cuts are part of Zoom’s efforts to ensure its long-term viability.
“As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom. But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard yet important look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” Yuan wrote in a memo to the company’s employees.
Juan declared that he and other top executives at the company will undergo significant salary reductions as they pivot their focus towards navigating the slowdown. In that regard, he said his salary for the upcoming fiscal year will be reduced by 98 per cent, and he will forfeit his bonus. Other executives in the leadership team will experience a 20 per cent decrease in their base salaries and will also not receive bonuses.
Zoom is joining a growing trend among tech firms making similar adjustments in response to economic challenges. Some of the other companies that have since announced layoffs from last year include Microsoft (10,000) Amazon (18,000), Meta (11,000) Twitter (4,400), Salesforce (8,000), Tesla (6,000), and Shopify (1,000) among others.