The corona pandemic had given Zoom a strong boost with the home office trend. However, the company has now announced that it will lay off some of its employees.
The video conferencing service Zoom has announced major job cuts in view of the uncertain economic situation. “We made the tough but necessary decision to downsize our team by about 15 percent,” CEO Eric Yuan told workers on Tuesday. Around 1300 employees are to leave. Yuan also announced reduced salaries and canceled bonuses for top management. He himself will reduce his salary by 98 percent in the coming fiscal year.
At the beginning of the Corona crisis, Zoom benefited greatly from the home office trend and reacted with a hiring offensive that later turned out to be oversized. The company has been struggling since the end of the pandemic-related boom. With job cuts, Zoom is right in line with the industry trend. In the past few weeks and months, a number of other tech companies – including Facebook parent Meta, the world’s largest online retailer Amazon, Google Group Alphabet and Twitter – have reported rounds of layoffs.
Source: Stern
