Zoom is cutting about 1,300 jobs as demand for the company’s video-conferencing services slows with the waning of the pandemic, reports The Guardian.
While announcing the layoffs February 7, which will hit nearly 15% of its workforce, the chief executive officer, Eric Yuan, said he would take a pay cut of 98% for the coming fiscal year and forgo his bonus.
“We worked tirelessly… but we also made mistakes. We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities,” Yuan said.
Zoom will incur about $50 million to $68 million in charges related to the layoffs, according to a regulatory filing February 7. The company said a substantial part of it will be spent in the first quarter of fiscal 2024.
Zoom had bumped up hiring during the pandemic to meet surging demand, but now joins U.S. companies in reining in costs to brace for a potential recession.
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