Zoom on Tuesday announced plans to chop about 1,300 employees, or 15% of its workforce, in line with a blog post on the corporate’s website.
Shares of Zoom closed up about 9.8%.
CEO Eric Yuan wrote within the blog post that because the world continues to regulate to life after the Covid pandemic, the corporate must adapt to the “uncertainty of the worldwide economy” in addition to “its effect on our customers.”
Zoom experienced an enormous boom through the pandemic when people were forced to earn a living from home and turned to video chat software to remain in contact with colleagues, family and friends.
“We worked tirelessly and made Zoom higher for our customers and users. But we also made mistakes,” Yuan said. “We didn’t take as much time as we must always should thoroughly analyze our teams or assess if we were growing sustainably, toward the very best priorities.”Â
Yuan said the cuts will impact every organization across Zoom, and employees who’re laid off can be offered as much as 16 weeks of salary and health-care coverage. The CEO also said he plans to cut back his own salary for the approaching fiscal yr by 98%, and he can be forgoing his 2023 corporate bonus.
“Because the CEO and founding father of Zoom, I’m accountable for these mistakes and the actions we take today– and I need to point out accountability not only in words but in my very own actions,” Yuan wrote within the post.
The corporate’s layoff announcement marks the most recent round of job cuts within the tech industry, as Dell on Monday announced plans to chop 6,650 jobs. In January, Google revealed plans to put off greater than 12,000 employees, Microsoft disclosed plans to chop 10,000 employees and Salesforce announced plans to lay off 7,000 employees.
