Zoom CEO, Eric Yuan, has announced the layoff of around 1,300 employees, or 15% of the workforce.
Yuan also said that he will forego his FY23 corporate bonus and reduce his income for the upcoming fiscal year by 98%.
“Members of my executive leadership team will reduce their base salaries by 20 per cent for the coming fiscal year while also forfeiting their FY23 corporate bonuses,” he announced.
Zoom usage increased considerably during the outbreak as millions stayed at home.
Yuan stated that the company is still seeing customers and businesses rely on Zoom.
“But 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,” he said in a blog post.
“We have made the tough but necessary decision to reduce our team by approximately 15 per cent and say goodbye to around 1,300 hardworking, talented colleagues,” Yuan added.
Employees leaving their full-time jobs in the US will be given up to 16 weeks of pay and healthcare benefits, payment of their earned FY23 annual bonus based on company performance, and stock option vesting for six months for US workers and through August 9, 2023 for non-US workers.
“I know this is a difficult message to hear, and certainly not one I ever wanted to deliver,” said Yuan.
Zoom will reveal its 2022 earnings on February 27.