Zoom said it plans to lay off 1,300 employees, equating to about 15% of its workforce. In a memo
to employees sent yesterday, CEO Eric Yuan said the video chat software
maker is adjusting to the “uncertainty of the global economy.”
- Zoom benefitted from a surge in demand during the pandemic but hired too quickly, tripling in size over only 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," according to Yuan.
- The layoffs will impact all of Zoom's departments and organizations.
- The CEO admitted that he is "accountable for these mistakes and the actions we take today."
- As a result, Yuan announced a 98% cut to his own salary for the upcoming fiscal year. His base salary last year was $301,731.
- Zoom's
executive team will also lower their base salaries by 20%, and all the
executives will forgo corporate bonuses for the fiscal year, according
to the company.
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