Zoom Layoffs Impact 1,300 Jobs As Company Plans To Sack 15% Workforce: Report

In latest round of tech layoffs, Zoom layoffs have begun. As per latest reports, the video-conferencing app has decided to sack almost 15 per cent of the workforce in wake of slowing demand. 

According to a report in The Guardian, Zoom layoffs would impact almost 1,300 employees and the company reportedly had to engage in these mass layoffs as the company’s services “slows with the waning of the pandemic.” In order to meet the hour’s demand, Zoom’s CEO Eric Yuan would also reportedly take a 98 per cent pay cut and forgo the bonus. 

“We worked tirelessly … 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,” The Guardian quoted Yuan as saying on Zoom layoffs. 

This round of mass layoffs at Zoom also has reportedly been mentioned in a regulatory filing. The report adds that the video-conferencing giant will reportedly incur about $50-$68 million in charges related to the layoffs. 

Since Zoom became a household name during the COVID-19 pandemic, the demand for company’s services rose exponentially. Back then, this also meant more hiring at the company, however, with the demand coming down, the company is embracing high costs and a potential recession. 

Zoom layoffs come just days after other tech giants like Microsoft, Meta, Google and Amazon also announced layoffs in the event of a global economic slowdown. While some companies are hiring in strategic areas, many have also not clarified on the same as they are bracing themselves for a potential recession in 2023.