Zoom lays off 1,300 employees; CEO takes 98% pay cut [details]

Video communication app Zoom is laying off about 1,300 folks, or 15 per cent of its workforce, its CEO Eric Yuan has introduced.

Yuan additionally stated that he’s lowering his wage for the approaching fiscal 12 months by 98 per cent and foregoing his FY23 company bonus.

“Members of my govt management workforce will cut back their base salaries by 20 per cent for the approaching fiscal 12 months whereas additionally forfeiting their FY23 company bonuses,” he introduced.

During the pandemic, Zoom utilization surged considerably as hundreds of thousands stayed residence.

Yuan stated the corporate remains to be seeing that individuals and companies proceed to depend on Zoom.

“But the uncertainty of the worldwide economic system, and its effecton our prospects, means we have to take a tough – but necessary – look inward to reset ourselves so we are able to climate the financial atmosphere, ship for our prospects and obtain Zoom’s long-term imaginative and prescient,” he stated in a weblog submit.

“We have made the powerful however crucial resolution to cut back our workforce by roughly 15 per cent and say goodbye to round 1,300 hardworking, proficient colleagues,” Yuan knowledgeable.

Departing full-time staff within the US can be supplied as much as 16 weeks’ wage and healthcare protection, cost of their earned FY23 annual bonus based mostly on firm efficiency, and inventory possibility vesting for six months for US staff and thru August 9, 2023 for non-US employees.

“I do know this can be a tough message to listen to, and definitely not one I ever wished to ship,” stated Yuan.

Zoom will announce its earnings for 2022 on February 27.

(With inputs from IANS)