Zoom lays off 15% of its global workforce

The CEO of the company, Eric Yuan, held himself 'accountable' for the problems that the company had been facing, and also mentioned that he would forgo his bonus and lower his pay by 98%.

Communications technology firm Zoom will lay off 1,300 workers, or 15% of its global workforce. This announcement was made on the company’s official blog on Tuesday by the CEO of the company, Eric Yuan.

The impacted employees, whom Yuan described as “hard-working, bright colleagues,” would be receiving an email if they are based in the US, and all non-US staff would be informed in accordance with local regulations.

Yuan claimed he was “accountable” for the company’s problems and announced he would forgo his bonus and lower his pay by 98%.

The pandemic, according to Yuan, “completely changed our trajectory,” and in only two years, Zoom’s workforce tripled. “We did not spend as much time as we ought to on rigorous team analysis or determining whether our growth was sustainable”, added Yuan.

“If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know. Non-US employees will be notified following local requirements,” Yuan said.

The CEO of Zoom refers to his employees as “Zoomies,” and those leaving full-time employment in the US will receive up to 16 weeks of pay and healthcare benefits, as well as payment of the earned annual bonus for the fiscal year 2023 based on company performance, RSU (Restricted Stock Units), and stock option vesting for six months for US workers and through August 9, 2023 for non-US workers.

The business, whose video-conferencing technologies helped it become well-known during lockdowns, has had its revenue growth stall, and profits are predicted to have decreased 38% in 2022.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members

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