Zoom to lay off 1,300 employees, CEO to take massive pay cut
Zoom announced plans to lay off approximately 1,300 employees, or 15% of its workforce, in a blog post on the company's website on Tuesday.
Earlier in the afternoon, Zoom shares were up 7%.
In a blog post, CEO Eric Yuan stated that as the world adjusts to life after the Covid pandemic, the company must adapt to the "uncertainty of the global economy" as well as "its effect on our customers."
During the pandemic, when people were forced to work from home, they turned to video chat software to stay 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, adding, “We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities.”
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Yuan stated that the layoffs will affect every organisation within Zoom and that employees who are let go will be offered up to 16 weeks of pay and healthcare coverage. The CEO also stated that he intends to reduce his own salary by 98% for the upcoming fiscal year, as well as forego his 2023 corporate 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,” Yuan said.
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