Layoffs 2023: Another sacking saga! Zoom meeting app cuts jobs - Read what CEO told employees
Layoffs 2023: 2022 witnessed a massive layoff wave with lakhs of employees across sectors losing their jobs. The tech industry started the year 2023 with a wave of job cuts. As many as 97,000 people have been sacked since the start of this year and there seems to be no stop to the wave.
The company behind the Zoom video conferencing platform - which became a household name during the Covid-19 pandemic – on Tuesday announced it is issuing pink slips to about 15 per cent of its workforce. The company is firing around 1,300 “hardworking, talented colleagues.”
In addition to this Zoom chief executive Eric Yuan is also reducing his salary this year by 98 per cent and forgoing his executive bonus. Members of his executive leadership team are taking a 20 per cent salary reduction and also forfeiting bonuses this year.
What is Zoom offering to laid-off employees?
Impacted employees will receive outreach from a leader in your organisation offering to have a 1:1 check-in should you want it. Departing full-time Zoomies in the US will be offered the following support:
Up to 16 weeks’ salary and healthcare coverage
Payment of your earned FY’23 annual bonus based on company performance
RSU and stock option vesting for 6 months for US employees and through August 9, 2023 for non-US employees
Outplacement services that include 1:1 coaching, workshops, networking groups, and more
Support for Zoomies outside the US will be similar and will take into account local laws.
CEO Eric Yuan’s message to Zoom employees I know this is a difficult message to hear, and certainly not one I ever wanted to deliver. If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know. Non-US employees will be notified following local requirements. For those Zoomies waking up to this news or reading this after normal work hours, I am sorry you are finding out this way but we felt it was best to notify all impacted Zoomies as soon as possible. How we got here We built Zoom to remove the friction that businesses felt when collaborating. Our trajectory was forever changed during the pandemic when the world faced one of its toughest challenges, and I am proud of the way we mobilized as a company to keep people connected. To make this possible, we needed to staff up rapidly to support the quick rise of users on our platform and their evolving needs. Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation. 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 analyze 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. Steps we are taking Each organization across Zoom will be impacted by these changes. We did not take a single departure lightly – our leadership carefully examined and made decisions based on critical priorities for long-term growth, and also looked for functions that have become overly complex or duplicative. Some teams will also be adjusting their structures to allow us to better invest in the opportunities ahead. But today we are focused on supporting those leaving Zoom and making the transition as respectful and compassionate as possible. As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today– and I want to show accountability not just in words but in my own 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. Zoom’s future & my commitment We are humbled to be realizing Zoom’s platform vision, but we still have a lot of hard work ahead of us to ensure we’re delivering an experience that enables a new kind of productivity – one that brings all the best tools and applications for modern, engaging collaboration into one destination. While we have to take these steps today, we will continue to invest in key strategic areas to help us reach our vision. My commitment to you is that we will make sure the changes we are making to our team today are not made in vain. We will learn from the past to set ourselves up for future success, and redouble our efforts to help evolve Zoom to tomorrow. As always, thank you, Zoomies. I am grateful for your imprint on Zoom’s legacy. – Eric