Zoom Announces 1,300 Job Cuts On 7 Feb
Mass layoffs in the tech industry have been a fixture in news headlines lately, with big companies from Shopee to Meta announcing substantial job cuts.
The latest company affected is Zoom, which announced it would cut about 1,300 jobs in a blog post shared yesterday (7 Feb).
Source: Chris Montgomery on Unsplash
The retrenchment will reportedly reduce Zoom’s workforce by about 15%.
Zoom attributes mass layoff to “uncertainty of the global economy”
In a letter on Tuesday (7 Feb), Zoom CEO Eric S. Yuan attributed the layoff to the “uncertainty of the global economy, and its effect on our [their] customers”.
As a result, he said, Zoom has had to “reset” internally to weather the economic climate, deliver for their customers, and achieve the company’s long-term vision.
According to The Guardian, the company most famous for its video-conferencing tools saw a 38% drop in profits in 2022.
Yuan wrote that Zoom tripled in “size” over a two-year period during the pandemic — this enabled them to meet the demands of a rapidly increasing user base.
However, he admitted that they did not take the time needed to assess whether the growth was sustainable.
Affected Zoom staff to get 16 weeks’ pay, healthcare & bonus
US-based Zoom staff, or ‘Zoomies’ as they are called, will receive up to 16 weeks’ salary and healthcare coverage.
Source: Google Maps
They will also be paid a yearly bonus based on “company performance” and given 6 months of stock option vesting.
To ease the transition, laid-off employees will have access to one-on-one coaching, workshops, and networking groups, among others.
Zoomies working outside of the US will receive a similar retrenchment package, the letter stated.
The Guardian reported that the layoffs will cost Zoom between S$76 million (US$50 million) and S$90 million (US$68 million).
Zoom CEO to take 98% pay cut and forgo bonus
Yuan himself revealed that he will take a 98% pay cut for the coming fiscal year and forgo his corporate bonus.
He wrote that by doing so, he wanted to show accountability for the “mistakes” that led to the mass layoff.
Members of his “executive leadership team” will also reduce their base salaries by 20% and forfeit their bonuses.
In ending, Yuan said the company will continue to work towards bringing all the “best tools and applications” for modern, engaging collaboration into one destination.
He also thanked all departing Zoomies for their impact on Zoom’s legacy.
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Featured image adapted from Chris Montgomery on Unsplash and Google Maps.
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