Zoom Video Communications, joining the wave of layoffs by large Internet companies, has announced that it will lay off a total of 1,300 employees, or 15% of its worldwide workforce.
Zoom lays off 1,300 workers worldwide.
The popular video calling app takes this drastic measure to which is added a 20% cut in the salary of all its managers. Even the company’s CEO, Eric Yuan, has waived his annual bonus -which represents 98% of his salary- in 2023.
The cut comes after Zoom has seen its growth slow in recent months, to the point where the company’s revenue has only grown by 6% in the last four fiscal quarters, while just a year ago, in 2021, it was up fourfold.
However, the current situation has completely changed for the company, which enjoyed spectacular growth during the pandemic months, but has not continued to be utilized at the same level when the health alert has ended. Its profits have fallen by 38% in the last fiscal year.
By Yuan’s own admission, during the pandemic months the firm grew out of control. “We worked tirelessly, but we also made mistakes. We didn’t take the time we should have to thoroughly analyze our teams or assess whether we were growing sustainably, toward the highest priorities,” he acknowledges.
Zoom had gone so far as to consider such far-fetched developments as the ability to transmit smells via video conferencing, something Yuan promised at the height of euphoria in 2022. However, the reality is now quite different and analysts expect the company’s accounts to continue to shrink.
That is why Zoom announces a drastic restructuring worldwide and its 1,300 layoffs join those announced by Google, Amazon, Microsoft and other major technology companies in recent weeks. We were talking about it today during an interview on TVE’s Canal 24 Horas, which I recommend you watch for more information:
