Zoom Video Communications, the leading video conferencing platform, announced on Tuesday that it is cutting 15% of its workforce, or approximately 1,300 jobs, in response to the ongoing economic environment. In a company-wide email, CEO Eric Yuan took accountability for the layoffs and announced that he will be reducing his salary by 98% for the upcoming fiscal year, as well as forgoing his corporate bonus.
Yuan acknowledged that while Zoom saw unprecedented growth during the pandemic, the company made mistakes in its rapid hiring and growth. In his email, Yuan stated, “We worked tirelessly and made Zoom better for our customers and users. But we also made mistakes. We didn't take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities.”
Members of the executive leadership team will also be taking pay cuts, reducing their base salaries by 20% and forgoing their corporate bonuses for 2023. The CEO’s base salary last year was reported to be $301,731, but with the 98% pay cut, his new salary for 2023 will be $6,034.62.
The laid off employees in the US will receive a generous exit package, including 16 weeks' salary and healthcare coverage, as well as access to outplacement services such as 1:1 coaching, workshops, and networking groups.
In his email, Eric Yuan emphasized his commitment to accountability and demonstrated this through his own actions. The CEO's unprecedented pay cut and the layoffs serve as a reminder of the impact that the ongoing economic environment is having on companies and workers across industries.
The move by Zoom to cut jobs and reduce salaries at the top level serves as a reminder of the ongoing economic uncertainty caused by the pandemic and the need for companies to adapt to these challenging times.
Big Tech layoffs
The recent layoffs in the tech industry have sparked concerns about the impact on the job market. The data compiled by Layoffs.fyi shows that 297 tech companies have laid off nearly 95,000 workers since the start of the year, which is a significant increase from previous years. If this trend continues, the industry could face a significant decrease in the number of employees, with over 900,000 jobs expected to be cut by the end of 2023. This would be nearly six times the total for the industry in 2022, as reported by the site.
The impact of these layoffs on workers and their families is significant, and it is important for companies and government to consider the long-term effects on the job market. It is also important for workers to have access to resources and support to help them find new employment opportunities in these challenging times.
Overall, the situation highlights the need for continued monitoring and analysis of the job market and the development of effective strategies to support workers and mitigate the impact of layoffs.