Video communication app Zoom is laying off about 1,300 people, or 15 percent of its workforce, its CEO Eric Yuan has announced. Yuan also said that he is reducing his salary for the coming fiscal year by 98 percent and foregoing his FY23 corporate bonus. Also Read - Zoom's New AI Tools Will Soon Summarize Your Meetings For You - Watch Video
“Members of my executive leadership team will reduce their base salaries by 20 percent for the coming fiscal year while also forfeiting their FY23 corporate bonuses,” he announced. Also Read - Disney CEO Bob Iger announces to lay off 7K employees to cut costs
Zoom slashes 1,300 jobs, announces 98 percent salary cut for CEO
During the pandemic, Zoom usage surged significantly as millions stayed home. Also Read - Zoom announces human avatars to its meeting app
Yuan said the company is still seeing that people and businesses continue to rely on Zoom.
“But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he said in a blog post.
“We have made the tough but necessary decision to reduce our team by approximately 15 percent and say goodbye to around 1,300 hardworking, talented colleagues,” Yuan informed.
Departing full-time employees in the US will be offered up to 16 weeks’ salary and healthcare coverage, payment of their earned FY23 annual bonus based on company performance, and stock option vesting for six months for US employees and through August 9, 2023 for non-US employees.
“I know this is a difficult message to hear, and certainly not one I ever wanted to deliver,” said Yuan.
Zoom will announce its earnings for 2022 on February 27.