“Email in the next 30 minutes…”: Zoom CEO announces 1,300 job cuts

New Delhi:

Communications technology firm Zoom will lay off about 1,300 employees, or 15 percent of its workforce, Chief Executive Officer Eric Yuan said today in the company’s official blog.

Calling the affected employees “hardworking, talented colleagues,” Mr. Yuan said they would receive an email if they are based in the US and that all non-US employees would be informed in accordance with local requirements.

“If you are a US-based employee who has been affected, you will receive an email in your Zoom and personal inbox within the next 30 minutes that reads [IMPACTED] Departure Zoom: What you need to know. Non-US employees will be notified according to local requirements,” Mr Yuan said.

Departing full-time “Zoomies” — as Zoom employees are called by their CEO — will be offered 16 weeks of pay and healthcare coverage in the US, payment of an accrued fiscal year 2023 annual bonus based on company performance, RSUs ( Restricted Stock Units) ) and stock options vested for six months for US employees and until August 9, 2023 for non-US employees.

“Support for ‘Zoomies’ outside the US will be the same and will take into account local laws,” Yuan said.

Zoom’s layoffs include a long list of technology firms cutting their workforce recently amid a slump in businesses after booming during the COVID-19 pandemic, which restricted people to working from home. This gave rise to a global demand for communication software and services, which encouraged many people to hire more at the time. Now, many companies are cutting down on their workforce as the Covid outbreak subsides across the country and large businesses switch to work from home.

“We built Zoom to remove the friction that businesses feel when collaborating. Our trajectory was forever changed during the pandemic when the world faced one of its most difficult challenges, and the I’m proud of the way we’ve aligned as a company to keep people engaged. To make this possible, we need to rapidly staff the rapid growth of users on our platform and support their evolving needs. Within 24 months, Zoom grew 3X in size to manage this demand while enabling continued innovation,” Mr. Yuan wrote in a blog post.

“As the world transitions to life post-pandemic, we are seeing people and businesses continue to rely on Zoom. Look inward to reset ourselves as we weather the economic climate, deliver for our customers and achieve Zoom’s long-term vision.”