Zoom to cut 15% of its workforce
CALIFORNIA, UNITED STATES — Communications technology firm Zoom is planning to lay off around 1,300 employees, or 15% of its total workforce.
According to Zoom CEO Eric Yuan, this decision was made to help the company adapt to the “uncertainties of the global economy” and “its effects on consumers.”
Zoom grew threefold within 24 months to correspond to their client’s growing demand. However, Yuan stated that their rapid growth did not give them enough time to “analyze our teams or assess if we were growing sustainably, toward the highest priorities.”
He added that businesses continue to depend on their services post-pandemic, but adjustments are needed.
To take accountability for the mistakes made in the company and the layoffs, Yuan revealed that he is lowering his salary for the coming fiscal year by 98%, and foregoing his 2023 corporate bonus.
Zoom’s executive leadership team is also reducing their base salaries by 20% for the coming fiscal year and forfeiting their 2023 corporate bonuses.
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