CEO Eric S. Yuan wrote in the ZOOM blog Zoom to lay off 15 percent of its employees. Moreover, he mentioned that the company increased its staff during the pandemic as the businesses became dependent on its services as people worked from home. He also said that Zoom grew by three times in size within 24 months to manage the demand created by the market. In the blog Yuan wrote, “The uncertainity of the global economy, and its effect on our customers, means we need to take hard – yet important – look inward to rest ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision.”
He added, “If you are a US-based employee who is impacted, you will receive an email to 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.”
Zoom to lay off 15 percent of its employees, but those full-time employees in the US would be provided up to 16 weeks salary and healthcare coverage, payment of earned the financial year 2023 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, outplacement services include 1:1 coaching, workshops, networking groups and more.
Those who worked in Zoom outside the US would be given similar and would take into account local laws.
He wrote in his blog, “We did not take a single departure lightly – our leadership carefully examined and made decisions based on critical priorities for long term growth, and also looked for functions that have become overly complex or duplicative. Some teams will also be adjusting their structures to allow us to better invest in the opportunities ahead. But today we are focused on supporting those leaving Zoom and making the transition as respectful and compassionate as possible.”
In the blog post on ZOOM, he also said that he would reduce his salary for the coming fiscal year by 98 percent and forego his FY23 corporate bonuses. In addition, he wrote that members of his executive leadership team would reduce their base salaries by 20% for the coming fiscal year and would forfeit 2023 corporate bonuses.
At the end, CEO Eric S. Yuan wrote, “My commitment to you is that we will make sure the changes we are making to our team today are not made in vain. We will learn from the past to set ourselves up for the future success, and redouble our efforts to help evolve Zoom to tomorrow. As always, thank you, Zoomies. I am grateful for your imprint on Zoom’s legacy.”