Lagatar24 Desk
New Delhi, Feb 8: Zoom on Tuesday announced that it will lay off about 1,300 workers or 15 per cent of its workforce, becoming the latest tech company to cut back amid looming concerns about the economy.
In a message to employees on the Zoom Blog, Zoom’s Chief Executive Officer Eric Yuan said the layoffs will affect every part of the organization.
“Over the past few years, Zoom has grown into an essential source of connectivity for businesses and individuals as well as a globally recognized brand. Whether you have been at Zoom since the beginning or joined us more recently, you’ve played an important role in our evolution, and that makes today’s announcement particularly difficult. We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues,” said the CEO.
Chief Executive Officer Eric Yuan, while announcing the layoffs, said he would take a pay cut of 98 per cent for the coming fiscal year and forego his bonus.
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“To that end, I am reducing my salary for the coming fiscal year by 98% and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses,” the CEO added.
Notably, the company hired many employees during the Covid-19 pandemic due to a surge in demand but now joins US companies in reining in costs to brace for a potential recession.
The shares of Zoom video dropped to around 90 per cent in comparison to October 2020 because of the pandemic boom. Shares closed up 9.9 per cent on the announcement of the news.
Now, Zoom has joined the list of tech companies that recently laid off their employees amid a post-boom economic slowdown in business due to the COVID-19 pandemic. Moreover, several tech companies like Infosys, Microsoft, and Twitter have recently announced similar moves in 2022 owing to over-hiring, uncertain global macroeconomic conditions and strong tailwinds.
