He Zoom CEO Eric Yuanindicated that he will lay off approximately 1,300 employees, that is, 15 percent of its labor force. Furthermore, he also assured that he will cut his own salary of $1.1 million by 98 percent.
The CEO posted a notice to his employees on ZoomBlog, informing them that those affected by layoffs will receive an email about this decision. The departures will affect all the departments of the company, which during the pandemic was dedicated to helping the different organizations to continue with their meetings virtually.
“In recent years, Zoom has become an indispensable source of Connection for companies and individuals, as well as a globally recognized brand. Whether you’ve been on Zoom from the beginning or joined us more recently, you’ve played an important role in our evolution and that makes today’s announcement particularly difficult,” Yuan’s message read.
It may interest you: Zoom adds custom avatars and new features for video calls
“We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hard-working and talented colleagues,” he stressed.
It also indicated that laid off employees will receive up to 16 weeks of salary and health care coverage. And on the news of the reduction in his salary, he also highlighted that the executives will also see this salary cut, and that they all gave up their 2023 annual bonuses.
“I know this is a difficult message to hear, and certainly not one that I wanted to convey. If you are an employee of the USA who is affected, you will receive an email in your Zoom and personal inboxes within the next 30 minutes that says [IMPACTO] Departure from Zoom ”, he indicated on his blog.
Zoom is another of the tech giants to announce big layoffs after the industry saw a brutal end in 2022.
In his message to employees posted 30 minutes before the emails, Yuan highlighted that, “We created Zoom to eliminate the friction that companies felt when collaborating. Our trajectory was forever changed during the pandemic when the world faced one of its toughest challenges, and I’m proud of the way we mobilized as a company to keep people connected.”
“To make this possible, we needed to recruit quickly to support the rapid growth of users on our platform and their changing needs. In 24 months, Zoom tripled in size to manage this demand while enabling continuous innovation,” he stated.
“As the world transitions to post-pandemic life, we see people and businesses continue to rely on Zoom. But the uncertainty of the global economy, and its effect on our customers, means that we must look hard, but importantly, inward to restart so that we can weather the economic environment, deliver on our customers, and achieve Zoom’s long-term vision. ”, he added.
It may interest you: Apple will improve the zoom with a new camera on the iPhone Ultra models
The future of Zoom
As indicated by the CEO, they are constantly changing, in the face of the post-pandemic, which also comes with great economic changes, and in this transformation they seek to make Zoom the best experience for users. “We are honored to bring the vision of the platform Zoom, but we still have a lot of hard work ahead of us to make sure we’re delivering an experience that enables a new kind of productivity.”
He also added that, “Zoom seeks to provide the best tools and applications for modern users, committing to collaboration in one destination. While we need to take these steps today, we will continue to invest in key strategic areas to help us achieve our vision.”
Finally, he assured that his commitment is with the users, and “I will make sure that the changes that we are making in our team today are not in vain. We will learn from the past to prepare for future success, and redouble our efforts to help Zoom evolve into tomorrow.”
