In the last few months, several tech companies have laid off thousands of employees for various reasons; however, economic instability is said to be the most common reason for the layoffs.
And, now popular video and audio conferencing app, Zoom is planning to layoff 15 percent of its total workforce. Talking about layoffs, Zoom’s CEO, Eric Yuan said that the COVID-19 pandemic affected the company’s trajectory as they had to recruit the 3X the staff within two years to fulfill the rapid growth of the platform.
Back in 2020, the shares of the video conferencing app surged as people were relying on video chats to host meetings during the pandemic time. But, as people started returning to their offices, the demand for Zoom eventually declined.
In Q2 2022, Zoom observed 15% decrease in revenue. So, to manage the financial stability, Zoom decided to layoff 15 percent of its total workforce.
Zoom’s CEO said, As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today– and I want to show accountability not just in words but in my own actions. To that end, I am reducing my salary for the coming fiscal year by 98% and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses.