Zoom plans to lay off 1,300 employees, its founder and Chief Executive Officer (CEO), Eric Yuan, announced.
The looming layoff at Zoom slashes roughly 15% of its workforce, affecting thousands of its workers.
Zoom Lays Off 1,300 Employees This 2023
As per a recent report by Engadget, tech giants have been trimming down their workforce these days, letting go a vast bulk of their workers, including firms like Microsoft, Google, and Amazon. And now, Zoom is joining these companies.
The chief executive of Zoom published a note to its staffers, explaining the looming layoffs in the video communication service, which rapidly grew during the height of the COVID-19 pandemic.
CNBC reports that the job cuts expanded to all the organizations in the company. The Zoom boss assured that the employees they are letting go are getting up to 16 weeks' worth of their salary. Not to mention that they will also offer them their healthcare coverage.
Zoom's Rapid Growth
Yuan admitted that the company growth was too quick amid the phenomenal popularity of the platform when most of us were forced to stay in the confines of our homes. He disclosed that they grew their size triple in the last two years.
The big boss of Zoom admits that they "made mistakes," pointing out their rapid growth, which was unsustainable.
Yuan adds that they "[did not] take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities."
The tech executive took full accountability for it. He states he is "accountable for these mistakes and the actions we take today."
Yuan Cuts His Salary
Given that, the Zoom CEO announced that he plans to reduce his salary for the upcoming fiscal year remarkably. His pay will sink by roughly 98%, and he will skip his 2023 corporate bonus.
So besides letting go of thousands of employees, the tech firm's big boss also decided to cut his salary.
Despite that, Yuan shares that companies are still using Zoom nowadays even if their employees are no longer working from home. However, given the economic uncertainties, the tech firm had to take some steps to survive.
The looming Zoom layoffs, which affect roughly 15% of its workforce, follow massive job cuts from other tech firms.
The latest job cut came from Dell, letting go of 6,650 workers. Previously, Google and Microsoft disclosed plans to lay off 12,000 and 10,000 employees.
