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Zoom to Lay Off 1,300 Workers Amid Slowing Demand

Zoom to Lay Off 1,300 Workers

This year, several big tech companies like Microsoft, Amazon, Meta, Alphabet, Dell and Disney have laid-off employees in 2023.

Zoom Video Communications Inc has joined the list of companies as the company is planning to cut 1,300 jobs

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Zoom, known for its video-conferencing tools, has widely used a communication technology platform during Covid-19 pandemic lockdowns.

Zoom to Lay Off 1,300 Workers

Source: Google

In 2020, Zoom has quickly become the best choice for businesses, schools, and personal communication. After an increase in demand, Zoom hired many employees during the Covid-19 pandemic. Around 6,800 employees added to its workforce

Zoom to Lay off 1,300 Employees

But after the pandemic the demand for video services has decreased in the world, so Zoom will have to lay off around 1,300 of its employees.

Zoom to Lay Off 1,300 Workers, Zoom CEO Eric Yuan

Source: Google

CEO Eric Yuan wrote in a blog post “Over the past few years, Zoom has become an indispensable source of connection for businesses and individuals as well as a globally recognized brand. Whether you have been at Zoom since the beginning or joined us more recently, you’ve played an important role in our evolution, and that makes today’s announcement particularly difficult. We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues,”

Would Take 98% Reduction in Salary, says, Zoom CEO

While announcing the layoffs, CEO of Zoom Eric Yuan said “he would take a 98% reduction in his salary and no bonus for himself. Rest of the executive leadership team will also not take corporate bonus and up to 20% of their base salaries will be reduced. the layoffs will hit nearly 15 percent of its workforce.”

Zoom to Lay Off 1,300 Workers, Zoom CEO Eric Yuan

Source: Google

CEO of Zoom Eric Yuan wrote. “To that end, I am reducing my salary for the coming fiscal year by 98% and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses,”

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CEO Eric Yuan, said that the laid-off employees will get a salary of 16 weeks along with healthcare coverage and a bonus for the year. “We worked tirelessly… but we also made mistakes. 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 was quoted by Reuters as saying.

Zoom to Lay Off 1,300 Workers, Zoom CEO Eric Yuan

Source: Google

He further added “I know this is a difficult message to hear, and certainly not one I ever wanted to deliver. If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know. Non-US employees will be notified following local requirements. For those Zoomies waking up to this news or reading this after normal work hours, I am sorry you are finding out this way but we felt it was best to notify all impacted Zoomies as soon as possible,”

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