On Tuesday, the virtual meeting tech company that allowed many people to keep their jobs during the pandemic announced that it too will be cutting 15% of its workforce which equates to 1,300 jobs.
Citing post-pandemic changes, Zoom CEO Eric Yuan wrote in a blog post that the company will have to cut back its number of employees - a growing trend that has been sweeping across the tech industry and has affected other businesses including Meta, Twitter, and Amazon.
"The uncertainty of the global economy, and its effect on our customers, means we need to take a hard - yet important - look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom's long-term vision," Yuan said in his blog post announcing the looming layoffs.
The company has confirmed that employees who are laid off will receive 16 weeks of pay and healthcare coverage.
Although Zoom had been in existence for several years prior to the Covid-19 pandemic, the company rose to prominence when the coronavirus drove the world's workforce into isolation. The platform allowed for companies to hold meetings with remote employees and was instrumental in keeping many companies open and workers employed. Now, in a cruel twist of fate, the company that helped save so many jobs is now having to cut so many from its own workforce.
According to Yuan, Zoom tripled in size during the pandemic, but in the post-pandemic economy, it is struggling, like so many other big tech companies, to keep its head above water. Yuan also took some responsibility for the job cuts saying that he would reduce his salary by 98% for the coming fiscal year. Perhaps if that had been done earlier, some of those 1,300 employees could have kept their jobs.
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