You can add Zoom to the long list of major tech companies that have recently laid off employees. It is laying off approximately 1,300 employees, or 15% of its workforce.
CEO Eric Yuan stated in a note to employees that the company expanded its headcount too quickly following Zoom’s pandemic-driven boom — it tripled in size in two years.
“We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities,” Yuan wrote.
He noted that, despite the fact that many people have returned to work, people and businesses continue to rely on Zoom.
Yuan also said that amid a rocky economic climate, “we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision.”
Yuan stated that he accepted responsibility for the layoffs. He is reducing his salary by 98 per cent for the upcoming fiscal year, and the executive team will forego 20 per cent of their base salaries.
Corporate bonuses for the fiscal year 2023 will be forfeited by all (i.e., the 2022 calendar year).
Employees laid off at Zoom in the United States will receive up to 16 weeks’ salary and healthcare coverage, their earned the fiscal year 2023 bonus, stock option vesting for six months, and assistance in finding a new job.
According to the company, laid-off workers outside the United States will receive similar assistance based on local laws.
Amazon, Alphabet, Microsoft, Dell, and Spotify are among the other major tech companies that have announced sweeping layoffs or plans to lay off more employees than previously planned this year.
We’re keeping track of the big tech layoffs in 2023, and it’s becoming an increasingly depressing list.