Zoom Layoffs Impact 15% Of Staff – Zoom has decided to lay off 1,300 employees, which is 15% of its workforce, after experiencing a massive surge in the early stages of the pandemic. “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves so we can weather the economic environment,” CEO Eric Yuan wrote in a blog post.
During the first two years of the pandemic, Zoom increased its workforce three-fold to cope with the sudden rise in demand as the company saw five consecutive quarters of triple-digit growth compared to the previous year. Though the growth rate slowed, Zoom continues to grow steadily. When the twelve-year-old company reported its latest quarterly earnings in November, its revenue grew by 5% year-over-year to reach $1.1 billion.
Although the online revenue declined by 9%, the enterprise revenue rose by 20% to $614.3 million. Additionally, Zoom reported a free cash flow of $272.6 million. “As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today — and I want to show accountability not just in words but in my own actions,” Yuan wrote. He will cut his salary by 98% and decline his bonus; he said that executive leadership will reduce their pay by 20% and also forfeit their bonuses.
As reported by Forbes, the net worth of Yuan is estimated to be $3.9 billion. In light of this, the employees who have been impacted by the situation will receive several forms of support, including up to 16 weeks of salary along with health insurance coverage. Additionally, they will receive their bonuses from the previous year. Furthermore, these employees will also have access to stock options that are set to vest and services that will aid them in securing new employment opportunities.
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