The organization that created the Zoom video conferencing technology, which became well-known during the pandemic, revealed on Tuesday that it is letting go of around 15% of its workforce.
In a blog post outlining the employment losses, Zoom Video Communications‘ CEO Eric Yuan said that he would also be forgoing his executive bonus and taking a 98 percent pay cut this year.
Zoom Will Layoff Workers
He continued by saying that this year, the members of his executive leadership team are forgoing bonuses and taking a 20 percent pay cut.
According to documents submitted to the Securities and Exchange Commission, Zoom’s workforce increased by more than 275 percent between July 2019 and October 2022, reaching 8,422 employees. When COVID-19 shutdowns were at their worst, individuals were isolated at home, and a lot of businesses and schools had to rely on Zoom to keep running.
However, after overhearing during the pandemic, a number of significant technological corporations have also recently announced job cuts, concerned about a slowdown in the larger economy.
In January, Microsoft and Alphabet each made 10,000 job cuts. Amazon, PayPal, Salesforce, Meta, and Meta have all cut back on staff. Dell announced this week that it would let go of more than 6,500 workers. Additionally, media companies like The Washington Post and Vox Media have begun terminating workers.
Although Zoom is still used by individuals and organizations as the world adjusts to life after the pandemic, Yuan wrote in the piece that consumers are cutting down on their spending.
According to Yuan, Zoom has decided to fire 1,300 employees, or around 15% of its workforce, a difficult but necessary move. The CEO stated that Zoom will continue to invest in important areas.
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US Firms Slash Workers
Zoom has added its name to a growing list of US software companies that have cut staff as years of extravagant spending have given way to austerity measures brought on by the global economic crisis.
The American computer company Dell announced on Monday that it would let go of about 6,650 workers or about 5% of its global workforce.
As the sector braces for an economic slump, internet titans Microsoft, Facebook owner Meta, Google parent Alphabet, Amazon, and Twitter have all taken similar actions.
They also followed a significant recruiting frenzy during the height of the coronavirus outbreak, when businesses scurried to fill positions as more people turned to the internet for work, school, and pleasure.
A little over 95,000 tech personnel have lost their jobs worldwide since the start of January, according to the specialized website Layoffs.fyi.
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