Zoom lays off 1300 employees amidst rising recession

CEO Eric Yuan sends an email to its employees

On Tuesday, Zoom CEO Eric Yuan announced layoffs in an e-mail  to employees. Yuan stated that the company intends to reduce its workforce by approximately 15%, or approximately 1300 people. "We have made the difficult but necessary decision to reduce our team by approximately 15% and say goodbye to approximately 1,300 hardworking, talented colleagues," he wrote in an email to employees.

During the pandemic, when everyone was stuck at home and working from home became the new normal, Zoom gained widespread popularity. Zoom began to lose traction after life returned to normal. Zoom, like many other technology companies, has announced layoffs.

The process of layoff has been mention mostly for US based employees. The email mentioned that non-US babesss employees will be notified following local requirements. For the zoomies finding about this after waking up or after normal work hours he said “I am sorry you are finding out this way but we felt it was best to notify all impacted Zoomies as soon as possible”

The CEO mentions that he is directly responsible for this outcome and will take responsibility through his actions. “To that end, I am reducing my salary for the coming fiscal year by 98% and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses” said Eric Yuan.

Yuan also mentions in the email that the departing employees will be offered 16 weeks’ salary and healthcare coverage along with payment of their  earned FY’23 annual bonus based on company performance. RSU and stock option vesting for 6 months will be given for US employees and through August 9, 2023 for non-US employees as well.