On Tuesday, Zoom revealed that it would eliminate nearly 1,300 jobs, or 15% of its workforce, making it the newest technology company to do so.
On Tuesday, Zoom revealed that it would eliminate 1,300 jobs, or around 15% of its workforce, making it the newest tech business to make big layoff announcements. Zoom’s CEO Eric Yuan said the layoffs would affect every area of the company in a statement to staff posted on the Zoom Blog.
“We have made the difficult but necessary decision to say goodbye to around 1,300 outstanding and dedicated colleagues,” Eric Yuan wrote.
According to Yuan, other executives will also accept a sizable wage cut. He acknowledged making “mistakes” in how swiftly the business expanded during the pandemic in the statement to the staff.
Eric Yuan wrote, “I am accountable for these errors and the decisions we make today as the CEO and creator of Zoom, and I want to show accountability not just in words but in my actions.
He added, ” To accomplish this, I am 98 percent lowering my compensation for the upcoming fiscal year and skipping my FY23 company bonus. For the upcoming fiscal year, members of my executive leadership team will receive 20% less base pay and won’t receive their FY23 corporate incentives.”
According to a statement from Eric Yuan to staff, a US-based employee who is impacted will receive an email to their Zoom and personal inboxes in the next 30 minutes. He continued by saying that non-US workers would be notified, respecting local regulations.
If you are an impacted US-based employee, an email with the subject line [IMPACTED] Departing Zoom: What You Need to Know will be delivered to your personal and Zoom inboxes in the next 30 minutes, according to Eric Yuan.
Following local regulations, notifications will be sent to non-US employees.
Unfortunately, some Zoomies learn about this after regular business hours, but he continued, “We felt it was best to tell all impacted Zoomies as soon as possible.”
In the early stages of the pandemic, according to Yuan, the firm staffed up “rapidly” to meet the surge in demand as people began using Zoom to video chat with friends and coworkers. “Within 24 months, Zoom grew three times in size to accommodate this demand while enabling further innovation,” he said.
The company will provide up to 16 weeks of pay and healthcare benefits, payment of the earned FY’23 annual bonus based on company performance, RSU, and stock option vesting for six months for US employees, and through August 9, 2023, for non-US employees to those affected by Zoom layoffs in the US.
Additionally, departing employees will receive outplacement services such as 1:1 coaching, workshops, networking groups, and more. Additionally, Zoom employees working outside the US will receive comparable support.
