Zoom will cut 15% of employees – Vedomosti
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The American video conferencing service Zoom announced the reduction of 1300 of its employees, which is 15% of the total staff, informed in an address to the team of CEO Eric Yuan.
“We have made the difficult but necessary decision to reduce our team by approximately 15% and say goodbye to approximately 1,300 hard-working and talented colleagues,” the post reads.
Yuan explained this step by the need to “reboot” the company against the backdrop of the uncertainty of the global economy. The cuts will affect all divisions of Zoom, he stressed.
The head of the company also called himself responsible for the mistakes made, saying that he would cut his salary for the upcoming fiscal year by 98% and refuse the corporate bonus. Top management salaries will be reduced by 20%, while they will also be deprived of bonuses. Laid-off employees will receive 16 weeks’ pay, health insurance, and a year’s bonus.
How notes Reuters, Zoom significantly increased staff due to growing demand during the pandemic, but as the situation with the coronavirus stabilized, it faced a drop in revenue. Analysts expect Zoom’s fiscal 2022 revenue to grow by just 6.7% and profit to fall 38% after a fourfold jump in revenue and a ninefold increase in profit in 2021.
On February 6, the American computer company Dell also announced a large reduction. Bloomberg wrote that the corporation will cut 6,650 employees – 5% of its staff. Also in January the company Microsoft announced reduction of 10,000 employees until the end of the III quarter 2023. In November, 2022 other American company HP announced dismissal of 6000 people.
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