- Many major firms have laid off workers in recent years, notably in the aftermath of the outbreak. Now Zoom joins them by laying off 15 percent of its workforce.
- Zoom’s CEO clarified that the pandemic had a long-term influence on the company’s trajectory and that it needed to staff up swiftly to keep up with the platform’s rapid growth.
- Eric Yuan, CEO of Zoom, assumes full responsibility for the layoffs and says that he will be reducing his salary for the coming fiscal year by 98%.
Many significant corporations have laid off staff recently, particularly after the epidemic. The reasons for these layoffs vary, but they frequently include increased economic instability. Amazon was seen laying off a massive chunk of people totaling 18,000 jobs, Twitter with thousands after Elon Musk acquired the company, 6,000 no longer working at HP, Google cutting more than 6% of its global workforce, and Dell laying off 6,650 employees.
Now Zoom, a communications platform that allows users to connect via video, audio, phone, and chat, has cut 15 percent of its workforce. Zoom’s CEO clarified that the pandemic impacted the company’s trajectory forever and that it needed to staff up quickly to accommodate the platform’s rapid growth. Zoom tripled in size in 24 months to meet this demand.
Post-pandemic adjustments
Zoom’s shares rose in 2020 as many businesses depended on video chats to conduct meetings owing to concerns over Covid-19. However, as more people return to their offices, the demand for Zoom has begun to decline. Zoom’s revenue for the second quarter saw more than a 15% decrease. As the company revenue goes down and the workforce stays the same, Zoom decided to cut down 15 percent of its workforce.
Eric Yuan, CEO of Zoom, assumes full responsibility for the layoffs by saying:
« 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. To that end, I am reducing my salary for the coming fiscal year by 98% and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses. »