Zoom CEO Announces Job Cuts, Takes Salary Cut Of 98%

Zoom’s Chief Executive Officer Eric Yuan on Tuesday announced in a blog that the company is laying off about 1,300 employees, or approximately 15 per cent of its staff adding that the changes will impact every part of the organization.

“We have made the tough but necessary decision to reduce our team by approximately 15 per cent and say goodbye to around 1,300 hardworking, talented colleagues,” Eric Yuan wrote.

ALSO READ: Quantum Computing Touted To Be At Centre Of India’s ‘Techade’: Is It Truly The Future? (abplive.com)

Addressing the affected employees as “hard-working, talented colleagues”, Yuan said those based in the US will get an email and all non-US staff will be informed following local requirements.

“If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know. Non-US employees will be notified following local requirements,” Yuan said in the blog post.

Yuan also noted that he and other executives will take a significant pay cut. In the message to employees, he admitted to making “mistakes” in how quickly the company grew during the pandemic.

Saying that he wants to show accountability for his mistakes not just in words but in actions, the CEO said he will take a 98 per cent pay cut.

“To that end, I am reducing my salary for the coming fiscal year by 98 per cent and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20 per cent for the coming fiscal year while also forfeiting their FY23 corporate bonuses,” he said.   

Yuan stated the company staffed up “rapidly” during the early days of the pandemic to support the increase in demand as people started using Zoom to video chat with friends and colleagues. He wrote, “Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation.”

To those affected by Zoom layoffs in the US, the company will give up to 16 weeks’ salary and healthcare coverage, payment of earned FY’23 annual bonus based on company performance, RSU and stock option vesting for six months for US employees and through August 9, 2023, for non-US employees.

Additionally, outplacement services, including 1:1 coaching, workshops, networking groups, and more will be given to departing employees. Moreover, support for Zoom employees outside the US will be similar.

Education Loan Information:
Calculate Education Loan EMI