Zoom to put off 1,300 staff, or about 15% of its workforce

Zoom on Tuesday introduced plans to chop about 1,300 staff, or 15% of its workforce, based on a weblog publish on the corporate’s web site.

Shares of Zoom closed up about 9.8%.

CEO Eric Yuan wrote within the weblog publish that because the world continues to regulate to life after the Covid pandemic, the corporate must adapt to the “uncertainty of the worldwide financial system” in addition to “its impact on our prospects.”

Zoom skilled an enormous growth in the course of the pandemic when folks have been compelled to make money working from home and turned to video chat software program to remain in contact with colleagues, family and friends.

“We labored tirelessly and made Zoom higher for our prospects and customers. However we additionally made errors,” Yuan stated. “We did not take as a lot time as we must always need to totally analyze our groups or assess if we have been rising sustainably, towards the best priorities.” 

Yuan stated the cuts will affect each group throughout Zoom, and staff who’re laid off shall be supplied as much as 16 weeks of wage and health-care protection. The CEO additionally stated he plans to scale back his personal wage for the approaching fiscal yr by 98%, and he’s additionally forgoing his 2023 company bonus.

“Because the CEO and founding father of Zoom, I’m accountable for these errors and the actions we take at this time– and I wish to present accountability not simply in phrases however in my very own actions,” Yuan wrote within the publish.

The corporate’s layoff announcement marks the most recent spherical of job cuts within the tech trade, as Dell on Monday introduced plans to chop 6,650 jobs. In January, Google revealed plans to put off greater than 12,000 staff, Microsoft disclosed plans to chop 10,000 staff and Salesforce introduced plans to lay off 7,000 staff.