Communications technology firm Zoom that boomed during the pandemic enabling work from home joined the lay off wagon on Tuesday. Around 1,300 employees or 15 per cent of its workforce would be laid off, chief executive Eric Yuan said in the company’s official blog. He added that he would also take a pay cut of 98 per cent for the coming fiscal year and forego his bonus.
“If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know. Non-US employees will be notified following local requirements,” Mr Yuan said.
Employees in the US will be offered up to 16 weeks’ salary and healthcare coverage, payment of earned fiscal 2023 annual bonus based on company performance, RSU (restricted stock units) and stock option vesting for six months for US employees and through August 9, 2023 for non-US employees. As for non US employees the firm has decided to issue the above nominals based on the local laws.
As Zoom enabled modulating bussiness from it boomed when individuals were locked in their houses during the pandemic. In view of the massive response the communication firm hired over the bar. Like other firms, it is also cutting their workforce as Covid wanes across nations and large businesses end work from home mode.
“We built Zoom to remove the friction that businesses felt when collaborating. Our trajectory was forever changed during the pandemic when the world faced one of its toughest challenges, and I am proud of the way we mobilized as a company to keep people connected. To make this possible, we needed to staff up rapidly to support the quick rise of users on our platform and their evolving needs. Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation,” Mr Yuan wrote on the blog post.