Zoom has become the latest technology giant to announce severe cuts to its workforce, with around 15% of its staff facing the axe.
A post (opens in new tab) on the video conferencing company’s website shares publicly a message that was sent to company employees, detailing the layoff of around 1,300 “hardworking, talented colleagues”.
The message comes from Zoom CEO Eric Yuan, who also promised he would be making cutbacks of his own to help support the company’s sustainability as it heads into what looks to be a challenging year.
In his statement, Yuan blamed the “uncertainty of the global economy” for what he calls a “reset” to the company – a move that will see 15% of its headcount leave.
Yuan also claims to be reducing his salary for the coming fiscal year by 98% in order for the company to better “weather the economic environment”. This would make it approximately $6,035 based on last year’s salary of $301,731, according to Bloomberg (opens in new tab). He will also forego a company 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,” Yuan added.
Zoom’s US workers have been promised up to 16 week’s salary and healthcare coverage, payment of their earned FY 2023 annual bonus based on performance, RSU and stock option vesting, and outplacement services like coaching, workshops, and networking groups. Non-US workers are said to get similar offerings based on local laws.