Zoom – the communications technology company which soared to monumental heights as the workforce pivoted to remote meetings back in 2020, announced plans on Tuesday to cut 1,300 employees amidst recession fears projected to take place in Q2 of 2023. According to a blog post on the company’s website, approximately 15% of Zoom’s workforce will be let go as the company adjusts with life after the pandemic and adapts to the “Uncertainty of the global economy,” according to Zoom CEO and founder, Eric Yuan.
According to Yuan, Zoom’s trajectory was forever changed when the pandemic impacted the world and their staff needed to grow exponentially fast to support the quick rise of users on the platform and its “evolving needs.” Each organization across Zoom will be impacted by the changes and to further hold himself accountable not just in his words but in his actions, Yuan will be reducing his salary for the coming fiscal year by 98% and foregoing his FY23 corporate bonus. Member of his executive leadership will also be reducing their base salaries by 20% and corporate bonuses. Employees who are laid off will also receive up to 16 weeks of paid salary and healthcare coverage.
Zoom’s layoff announcement comes just after job cuts were announced from tech industries like Dell announcing plans to cut 6,650 jobs on Monday, Google’s plan to lay off more than 12,000 workers in January, Microsoft cutting 10,000 employees and Salesforce laying off 7,000 workers.
Watch Patrick Bet-David’s take on Zoom back in 2020, and the future of Pandemic Proof Companies, below:
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