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Zoom, the tech firm that shot into headlines in the course of the Covid-19 pandemic as many firms moved distant, on Tuesday introduced plans to chop 1,300 staff from its workforce.
In a message shared on Tuesday Zoom employee, CEO Eric Yuan wrote that the corporate wanted to adapt to “the uncertainty of the global economy” and “its impact on our customers”.
shares of Zoom stock rose more than 7% Afternoon enterprise.
“Now we have labored tirelessly to make Zoom higher for our clients and customers. However we additionally made errors,” Yuan written in zoom blog, “It did not take us that lengthy to completely analyze our groups or assess whether or not we have been shifting sustainably towards the highest priorities.”
Yuan said the layoffs account for 15% of the company’s workforce.
The company grew its workforce during the pandemic, the CEO said, when businesses became increasingly dependent on its service as people worked from home.
Zoom tripled in size within 24 months to manage the demand.
He also said that businesses will continue to rely on his service after the pandemic but adjustments are needed.
Yuan said he is slashing his salary by 98% for the coming fiscal year and giving up his 2023 corporate bonus, adding that he is aware of the mistakes made and actions taken at the San Jose, California-based company. Accountable for the actions taken.
Yuan’s executive leadership team is taking a 20% reduction in their base salaries for the coming fiscal year and forfeiting their 2023 corporate bonus.
Layoffs join Google, Amazon, Spotify, Microsoft and more
Zoom has become the latest technology company to lay off a large number of employees.
Google’s parent company Alphabet recently laid off 12,000 employees, equivalent to 12% of its workforce. Meta cut an even bigger chunk of its workforce. Even IBM, which has been in business for 111 years, is cutting thousands of jobs.
According to the data, since the beginning of the year, 297 tech companies have fired about 95,000 employees. Compiled by Layoffs.fyiA website tracking tech layoffs since March 2020. If this rate continues, the industry could cut more than 900,000 jobs in 2023. According to the site, that’s a sixfold total for the industry in 2022.
Contributing: The Associated Press, Elisabeth Buchwald and Javier Zaracin
Natalie Nessa Alund covers trending news for USA TODAY. Contact him at nalund@usatoday.com and follow him on Twitter @nataliealund,