Zoom announces layoffs for 1,300 workers, CEO Eric Yuan to take 98% pay cut

Zoom, the widely popular video conferencing platform, has announced its plan to lay off 1,300 employees in a challenging move. 

In a message  Eric Yuan, CEO of Zoom, stated that the company will be reducing its team by approximately 15% and saying goodbye to around 1,300 employees.

The COVID-19 pandemic and the sudden surge in demand for virtual communication made Zoom a household name overnight. In just two years, the company grew three times its original size to meet the needs of its rapidly increasing user base. However, as the world begins to return to a post-pandemic normal, the company has realized it needs to reassess its growth to ensure long-term success.

"We made mistakes," admitted Yuan. "We didn't take enough time to thoroughly analyze our teams and assess if we were growing sustainably."

To demonstrate accountability, Yuan has announced that he will be reducing his salary by 98% for the coming fiscal year, along with members of the executive leadership team who will reduce their base salaries by 20%.

For departing employees, the company is offering a range of support, including up to 16 weeks' salary, healthcare coverage, annual bonuses, vesting of stock options, and outplacement services. "If you are departing, please know that you will always be part of the Zoom family," said Yuan. "Your dedication and talent will be amazing assets to any company, and I am deeply appreciative that you shared that talent with Zoom."

The company will continue to invest in key strategic areas and work towards delivering a new kind of productivity that integrates the best tools and applications for modern collaboration. "My commitment to you is that we will make sure the changes we are making to our team today are not made in vain," said Yuan. "We will learn from the past to set ourselves up for future success, and redouble our efforts to help evolve Zoom to tomorrow."