About 15 per cent of the workforce at communications technology firm, Zoom, will be asked to leave, as per an official blog.
The video communications company had become widely popular as a conferencing tool, especially during the pandemic when most companies had their employees working from home. At the time, Zoom had also hired many people to keep up with the rise in demand for the video-conferencing tool.
However, with the demand for video services dipping drastically post pandemic, Zoom witnessed a drop in pace of growth. As a result, the Company has had to resort to what Eric Yuan, CEO, Zoom, calls a ‘difficult measure’ in an official blog post. The impacted employees will be let go with 16 weeks’ salary as severance, as well as a year’s healthcare cover and bonus.
Now, Zoom is trying to cut costs and prepare for the recession which is feared will arrive soon.
Yuan himself is taking a 98 per cent pay cut for this year and will also be letting go of his corporate bonus for 2023.
In the post, Yuan reveals that other executive leaders will also be taking a 20 per cent cut in their basic salaries and will forego their corporate bonuses for 2023.
Yuan admits that the Company failed to analyse the long-term growth and sustainability of their decisions; that they may not have prioritised right.
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