Zoom Video Communications, the company behind the widely-used video conferencing platform, announced plans to lay off approximately 15 percent of its workforce on Tuesday.
In a blog post, Eric Yuan, the CEO, disclosed that he will be taking a 98 percent reduction in salary and forgoing his executive bonus this year. Members of the executive leadership team will also receive a 20 percent reduction in salary and forfeit their bonuses.
Despite continued reliance on Zoom as the world adjusts to post-pandemic life, the company is facing reduced spending from customers, as stated by Yuan. This has led to the difficult decision to lay off around 1,300 employees.
Owing to the challenges posed by the pandemic, Yuan expressed pride in the company’s ability to keep people connected and noted that the company’s employee count tripled during the pandemic due to the platform’s widespread use for remote work, court hearings, and social events.
Zoom has joined the trend of US tech companies reducing their workforce amid global economic challenges and a shift toward cost-saving measures.
The cuts come after a period of significant hiring during the peak of the COVID-19 pandemic when companies were attempting to meet the increased demand for online work, education, and entertainment. According to the job loss tracking site, Layoffs. FYI, over 95,000 tech employees have lost their jobs since the start of the current year.