Zoom (ZM) to lay off 1,300 employees, CEO to take a substantial pay cut

Zoom's (NASDAQ: ZM) shares rose more than 7% Tuesday after it became the latest tech firm to announce layoffs, with CEO Eric Yuan saying in a blog post on Tuesday that the business would reduce 15% of its employees or roughly 1,300 jobs.

In addition, Yuan also stated that he will forgo his fiscal 2023 corporate bonus, and his salary will be reduced by 98% for the upcoming year. Furthermore, members of Zoom's executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses.

Yuan explained that during the pandemic, Zoom grew 3x in size to manage demand, but it had "made mistakes."

The company believes it didn't take as much time as it should have to thoroughly analyze its teams or assess if it was growing sustainably. As a result, while the company said businesses continue to rely on Zoom post-pandemic, the economic uncertainty, and its effect on Zoom customers, means it needs to reset to weather the economic environment.

The company confirmed that the changes will impact each organization across Zoom.

By Sam Boughedda

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