You can now add Zoom to the large list of well-known IT companies that have recently let go of staff members. Approximately 1,300 workers will be laid off, representing 15% of the workforce.
Zoom had a boom caused by the epidemic that caused its personnel to triple in just two years, according to a memo from CEO Eric Yuan to employees. According to Yuan, “We didn’t spend as much time as we should have analysing our teams in-depth or determining if we were developing sustainably, towards the top priority.”
Even though many people have gone back to work, he saw that individuals and organisations continue to use Zoom. In spite of this, Yuan stated that “we need to take a hard, yet crucial, look inward to reset ourselves so we can weather the economic environment, deliver for our clients, and fulfil Zoom’s long-term ambition” in the midst of a turbulent economic climate.
Yuan declared that he accepted responsibility for the layoffs. The executive team will forgo 20% of their base compensation, and he will reduce his pay for the upcoming fiscal year by 98%. For the fiscal year 2023, everyone will forfeit their corporate compensation (i.e., the 2022 calendar year).
Employees of Zoom who are let go in the US will be compensated with up to 16 weeks of pay, healthcare benefits, their earned bonus for the fiscal year 2023, a six-month vesting period for stock options, and assistance with finding other employment. According to the business, laid-off employees abroad will receive comparable support in accordance with local regulations.
In addition to other significant tech firms like Dell, Microsoft, Alphabet, and Spotify, this year has seen the announcement of massive layoffs or intentions to lay off more employees than originally anticipated. The list of significant tech layoffs for 2023 that we are compiling is growing more depressing.
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