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Zoom disclosed intentions to let go of around 1,300 employees, or 15% of its staff, in a blog post released on the company’s website on Tuesday.
Zoom’s stock was up roughly 8% on Tuesday.
In a blog post, CEO Eric Yuan stated that while the globe continues to adjust to life after the epidemic, the firm must adapt to the “uncertainty of the global economy” as well as “its influence on our clients.”
When people were compelled to work from home due to the epidemic, many resorted to video chat software to remain in touch with colleagues, friends, and family.
“We worked tirelessly and made Zoom better for our customers and users.” “But we also made mistakes,” Yuan said. “We didn’t take as much time as we should have to thoroughly analyse our teams or assess if we were growing sustainably towards the highest priorities.”
Yuan stated that the layoffs will affect every business inside Zoom, adding that employees who are laid off will be granted up to 16 weeks of pay and healthcare coverage. Yuan also stated that he intends to cut his personal pay by 98% for the next fiscal year, as well as forfeit his 2023 company bonus.
“As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today—and I want to show accountability not just in words but in my own actions,” he wrote in the post.
The layoff news comes on the heels of Dell’s Monday revelation of its intentions to eliminate 6,650 workers. Google announced its intentions to lay off more than 12,000 employees in January, Microsoft announced plans to take off 10,000 employees, and Salesforce announced plans to lay off 7,000 workers.