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Business News/ Companies / News/  ‘Doesn't make sense’: Zoom employees left in ‘utter disbelief, shock’ by layoffs
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‘Doesn't make sense’: Zoom employees left in ‘utter disbelief, shock’ by layoffs

Zoom Video Communications is eliminating 15% of its workers as the service that became ubiquitous during the pandemic adapts to slower growth. The company will cut about 1,300 jobs as part of a restructuring bid.

SAN JOSE, CALIFORNIA - FEBRUARY 07: A sign is posted on the exterior of Zoom headquarters on February 07, 2023 in San Jose, California. Zoom Video Communications announced plans to cut 15 percent of its workforce, an estimated 1,300 people. Justin Sullivan/Getty Images/AFP (Photo by JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA / Getty Images via AFP) (Getty Images via AFP)Premium
SAN JOSE, CALIFORNIA - FEBRUARY 07: A sign is posted on the exterior of Zoom headquarters on February 07, 2023 in San Jose, California. Zoom Video Communications announced plans to cut 15 percent of its workforce, an estimated 1,300 people. Justin Sullivan/Getty Images/AFP (Photo by JUSTIN SULLIVAN / GETTY IMAGES NORTH AMERICA / Getty Images via AFP) (Getty Images via AFP)

Zoom employees were left feeling betrayed and confused on Thursday as the company laid off around 15% of its staff. The announcement affected around 1300 employees, with others including CEO Eric Yuan taking a significant pay cut.

“It is with utter disbelief and shock that I was included in today's Zoom's layoffs - as I was just approaching 8-years in 10-days...I can't even believe I'm writing this or that this is really happening..." wrote Christy Flis - the head of Global Education at Zoom until this week.

In a lengthy LinkedIn post the former ‘Zoomie’ said that the situation “does not make any sense, yet here we are."

“Sadly, I’ve just learned I’ve been impacted by the Zoom layoffs. I'm shocked, sad, angry, and a whole mix of emotions jumbled together," said fellow affected employee Rhonda Hughes who had worked with the company for nearly three years.

Meanwhile, Zoom software engineer Kyle Brown said that he had been laid off while on paternity leave with his infant daughter.

The startling development came soon after the company posted growth in revenue - a situation that has made many employees feel ‘betrayed’.

CEO Eric Yuan said that he and other executives would take a significant pay cut, admitting to making making "mistakes" in how quickly the company grew during the pandemic.

“As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today…To that end, I am reducing my salary for the coming fiscal year by 98 per cent and foregoing my FY23 corporate bonus. 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 added.

Zoom will give those affected by the layoffs up to 16 weeks salary and healthcare coverage, payment of earned FY'23 annual bonus based on company performance, RSU and stock option vesting for six months for US employees and through August 9, 2023, for non-US employees.

(With inputs from agencies)

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Published: 09 Feb 2023, 02:39 PM IST
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