Zoom has become the latest tech giant to announce major workforce cutbacks, with around 15% of workers facing the axe.
AND fast (opens in a new tab) on the website of the videoconferencing company, publicly shares a message sent to the company’s employees detailing the layoffs of some 1,300 “hard-working, talented colleagues”.
The news comes from Zoom CEO Eric Yuan, who has also vowed to make his own cuts to support the company’s sustainability as the challenging year approaches.
In his statement, Yuan blamed “global economic uncertainty” for what he calls the company’s “reset” – a move that will see 15% of its employees leave.
Yuan also says he will cut his salary by 98% for the upcoming fiscal year so that the company can better “face the economic environment.” That would be about $6,035 based on last year’s salary of $301,731, according to Bloomberg (opens in a new tab). He will also forgo the company bonus.
Members of my executive leadership will cut their base salaries by 20% in the coming fiscal year while losing their FY23 corporate bonuses,” added Yuan.
Zoom’s US employees were promised up to 16 weeks’ pay and health care, FY2023 earned annual bonus payment based on performance, RSU and stock option acquisition, and outplacement services such as coaching, workshops and networking groups. Non-US workers are said to receive similar offers based on local laws.