Video conferencing platform Zoom has become the latest tech company to join the mass employee cutback spree due to the volatile global economy.
Zoom Video Communications Chief Executive Eric Yuan notified the employees of the decision to lay off about 15% of its workforce, reportedly via a blog post. Yuan also declared a 98% cut in his salary this year as well as the cancellation of his executive bonus.
While people and businesses continue to rely on Zoom "as the world transitions to life post-pandemic," the Silicon Valley-based firm is seeing customers cut back on spending, Yuan wrote in the post.
Zoom has made the "tough but necessary" decision to lay off about 1,300 people, or roughly 15% of its staff, according to Yuan.
"Our trajectory was forever changed during the pandemic, when the world faced one of its toughest challenges, and I am proud of the way we mobilized as a company to keep people connected," Yuan said.
He added that members of his executive leadership team are taking a 20% salary reduction and also forfeiting bonuses this year.
Zoom tripled its ranks of employees during the pandemic, as people used the platform for remote work, court hearings, social events and more, while COVID-19 risks barred them from getting together in person, according to Yuan.
"We are seeing that people and businesses continue to rely on Zoom. But the uncertainty of the global economy and its effect on our customers means we need to take a hard look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom's long-term vision. Zoom will continue to invest in strategic areas,” Yuan noted.
The cuts follow similar steps by tech giants Microsoft, Facebook owner Meta, Google parent Alphabet, Amazon and Twitter as the industry braces for an economic downturn.
They also come after a major hiring spree at the height of the coronavirus pandemic, when companies scrambled to meet demand as people went online for work, school and entertainment.
The Layoffs.fyi website for business professionals has noted that, globally, just over 95,000 tech employees have lost their jobs since January.
Zoom suddenly became a ubiquitous household name during the COVID-19 pandemic as its software helped people across the world to remotely work, learn, and socialize.
