The communications technology company is planning to assist those impacted in the US by offering to pay them up to 16 weeks’ salary and healthcare coverage along with earned FY23 annual bonus based on the company's performance
Zoom Video Communications has announced the layoff of about 1,300 employees, a move that will impact 15% of the company’s workforce, citing the uncertainty of the global economy and hiring mistakes.
The job cuts were confirmed through a message from the US-based communications technology company’s CEO Eric Yuan to employees.
All the US-based impacted employees will be notified through an email sent to the Zoom and personal inboxes which reads: “[IMPACTED] Departing Zoom: What You Need to Know”.
The impacted employees in other countries are expected to be informed following local requirements.
Besides, a leader in the organisation will reach out to those affected employees and offer to have a one-on-one check-in.
Yuan said: “We worked tirelessly and made Zoom better for our customers and users. But we also made mistakes.
“We didn’t take as much time as we should have to thoroughly analyse our teams or assess if we were growing sustainably, toward the highest priorities.
“As the world transitions to life post-pandemic, we are seeing that people and businesses continue to 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.”
Zoom is planning to assist those impacted in the US and the company offers to pay them up to 16 weeks’ salary.
It will also offer healthcare coverage and earned FY23 annual bonus based on the performance of the company.
Furthermore, the company will provide outplacement services including one-on-one coaching, workshops, and networking groups.
Yuan said that every organisation across Zoom will be impacted by the changes.
As part of the actions that the company is undertaking, Yuan stated that he will forego his FY23 corporate bonus and lower his salary for the upcoming fiscal year by 98%.
The other members of the executive leadership team will see their base salaries reduced by 20% for the coming fiscal year along with foregoing their FY23 corporate bonuses.
Zoom’s layoff announcement follows a series of mass job cuts in the technology sector including that of Dell, Amazon, Google, Meta, Twitter, Microsoft, and others.