Zoom CEO Eric Yuan announced the company would be laying off 1300 employees, or 15% of its workforce, on the company’s official blog. He called the impacted workers “hardworking, talented colleagues” and said that if they are based in the US, they will receive email, and all non-US workers will be informed in accordance with local regulations.
Zoom to lay-off 1300 or 15 per cent of its workforce
Mr. Yuan said,
“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,”
Furthermore, he referred to full-time Zoom employees as “Zoomies” and let them know that they would receive up to 16 weeks of pay and healthcare benefits, as well as a payment of their earned fiscal 2023 annual bonus based on company performance. They would also receive RSUs (restricted stock units) and stock option vesting periods of six months for US employees and eight months for non-US employees, respectively.
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Slowdown in Business forces Zoom to lay-off
Mr. Yuan said,
“Support for ‘Zoomies’ outside the US will be similar and will take into account local laws,”
The layoffs at Zoom are the latest in a long line of technology companies that have recently reduced their workforces because to a slowdown in business following the boom during the COVID-19 epidemic, which forced many to work from home. Global demand for communications software and services resulted from this, which prompted many businesses to increase hiring at the time. As Covid declines globally and major corporations discontinue work-from-home policies, many companies are now reducing their personnel.
Mr. Yuan wrote on the blog post
“We built Zoom to remove the friction that businesses felt when collaborating. Our trajectory was forever changed during the pandemic when the world faced one of its toughest challenges, and I am proud of the way we mobilized as a company to keep people connected. To make this possible, we needed to staff up rapidly to support the quick rise of users on our platform and their evolving needs. Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation,”.
Further said,
“As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom. But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,”
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