The company Zoomwhich became famous during the covid-19 pandemic for facilitating and popularizing group video conferences, announced this Tuesday that it is laying off 1,300 people, equivalent to 15% of its workforce.
Zoom CEO Eric S.Yuan sent a message that he made public to all his employees acknowledging “having made mistakes” by not properly assessing the size of their teams to ensure sustained growth.
Zoom tripled its size in 24 months - the most critical of the pandemic - while it became a daily work tool for many of the companies that opted for teleworking, and although "people and businesses continue to trust Zoom”, the company faces “uncertainties in the global economy”.
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Yuan points out that he has not taken the decision to lay off lightly, but that it was made based on "critical priorities for long-term growth”, and then adds that he himself reduces his salary by 98% in the next fiscal year and renounces the corporate bonuses that would correspond to him in 2023, while the other executives will reduce it by 20%.
For those laid off, if they were based in the United States, Zoom guarantees 16 weeks of salary and medical coverage, annual bonus payments according to their performance and priority access to shares, among other things, while those affected in other countries will have approximately same benefits based on local legislation.
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Zoom is the latest technology company to announce massive layoffs from a long list of companies that grew exponentially during the pandemic and have now had to reduce their workforce, including the largest -Google, Microsoft, Amazon, Meta, with figures of more than 10,000 affected in each case- and others of medium size such as Spotify, PayPal, IBM, Twitter, Dell or Snapchat.
