BREAKING NEWS: Zoom will layoffs 1,300 employees, and CEO Eric Yuan announced a 98% pay cut.
Through a blog post on the Zoom website, the company’s CEO informed us about the layoffs. CEO Eric Yuan wrote in the blog that the whole world is trying to adjust after the pandemic. The company will also have to deal with the uncertainties of the global economy and the impact of the slowdown on customers.
Zoom has decided to lay off 1300 of its employees. This is around 15% of the total workforce of the company. Several startups and tech companies around the world have laid off people in the last few months. The company has given information about layoffs through a blog post on its website. Zoom shares gained 8% on the Nasdaq on Tuesday.
The company’s CEO Eric Yuan wrote in the blog that after the pandemic the whole world is trying to adjust. The company will also have to deal with the uncertainties of the global economy and the impact of the slowdown on customers.
Zoom’s business was at its peak when the whole world was imprisoned in homes due to Coronavirus infection. Whether in the office or talking with friends and relatives, Zoom was being used a lot.
Yuan also wrote, “We are constantly working to make Zoom better for its customers and users. But we make mistakes too.” He further wrote, “We did not take much time to review our team. We are looking at how to make the business sustainable.”
Yuan said that salary cuts and layoffs will affect every segment of Zoom. The employees who will be retrenched by the company will get the facility of 4 months’ salary and health coverage. Yuan also said that he will reduce his salary by 98% in the coming fiscal year. Along with this, he is also not taking the corporate bonus of 2023.
Yuan also wrote in his post, “As the CEO and founder of the company, I am responsible for these mistakes and the steps taken today. I want to show my accountability not only by words but also by actions.”
Tech and startup companies have been laying off continuously for the last few months. On Monday, Dell fired 6650 employees. In January this year, Google announced the layoff of 12,000 people. Microsoft has also planned to lay off 10,000 employees. At the same time, Salesforce has made a plan for the layoff of 7000 staff.
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