Zoom is laying off about 1,300 employees, cutting its workforce by about 15%. It’s the latest company to be hit by large tech layoffs, joining Microsoft, Amazon, Meta, PayPal and many others.
The mass layoffs were announced in a blog post by Zoom founder and CEO Eric Yuan.(opens in new tab) On Tuesday, affected U.S. employees said they would be notified by email within 30 minutes of disclosure. Non-U.S. employees who are terminated will be notified in accordance with local law.
“We apologize to any Zoomies who woke up to this news or are reading this after normal business hours, but we felt it was best to notify all affected Zoomies as soon as possible. rice field.
Tech workers getting fired abruptly over email has unfortunately become a common scenario over the past few months. Another company is announcing mass layoffs every week. Yuan said the retiring Zoom employee will have the option of checking in one-on-one with company leaders if needed, but that probably doesn’t make it any less painful.
Full-time U.S. Zoom employees to be laid off will receive up to 16 weeks of pay and medical coverage, as well as annual bonuses, six months of stock option vesting, and designed to help find new talent given access to the provided services. employment. Overseas employees receive similar benefits, but again local requirements are taken into account.
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Zoom exploded in popularity at the start of the COVID-19 pandemic, with millions turning to video conferencing tools as businesses began working remotely and countries went into lockdown. I was. Yuan said Zoom has tripled in size in just two years and has hired new staff to handle the unexpected influx of customers.
But as lockdowns lifted and employees began returning to the office, Zoom’s growth and revenue slowed.This, combined with rising costs, saw the company’s net profit(opens in new tab) drops significantly. As of November, Zoom’s stock has plummeted more than 90% of his.(opens in new tab) Since the October 2022 peak.
“We didn’t spend as much time as we needed to thoroughly analyze our team or assess whether we were making sustained progress towards our top priorities,” Yuan said in a Tuesday blog post. I am writing to
Yuan also announced a temporary salary cut this year, cutting salaries by 98% and not receiving bonuses. Similarly, the executive’s leadership team salary will be reduced by 20% this year and no bonus will be paid.
“As the CEO and founder of Zoom, I take responsibility for these mistakes and my actions today, and want to show accountability not just with my words, but with my actions.
Zoom’s next earnings call is due at the end of this month, when the company will announce results for the full fiscal year 2023.
