Zoom CEO Eric Yuan has announced layoffs of approximately 15% of the company’s workforce, which amounts to around 1,300 employees. This layoff decision was made due to the uncertainty of the global economy and its impact on Zoom’s customers. The company is restructuring to weather the economic environment and achieve its long-term vision. Employees who are departing will receive support such as up to 16 weeks’ salary, healthcare coverage, earned annual bonus, vesting RSU and stock options, and outplacement services. The CEO and executive leadership team will reduce their salaries for the coming fiscal year and forego their bonuses. The CEO has committed to making sure the changes are not made in vain and to continue to invest in key areas for future success.
Dear Zoomies,
“Today I have to deliver a difficult message. As a company, we have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 of our hardworking and talented colleagues. If you are a US-based employee who has been 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.
I understand that this is a difficult message to hear and I take full responsibility for the decisions made. Our leadership has carefully examined and made decisions based on critical priorities for long-term growth and to better invest in the opportunities ahead. We have to take these steps to ensure that we can weather the economic environment and achieve Zoom’s long-term vision.
As the CEO and founder of Zoom, I am taking accountability for these actions and 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 and also forfeit their FY23 corporate bonuses.
We want to support our departing colleagues in the best way possible. Impacted employees will receive outreach from a leader in their organization and will be offered 1:1 check-in to offer support during this transition. Departing full-time Zoomies in the US will receive up to 16 weeks’ salary and healthcare coverage, payment of their earned FY23 annual bonus based on company performance, RSU and stock option vesting for 6 months, and outplacement services that include 1:1 coaching, workshops, networking groups, and more. Departing employees outside the US will receive similar support and will take into account local laws
Thank you, Zoomies, for your dedication and talent. You will always be part of the Zoom family and we are here to support you as you navigate what’s next. Your talent will be an amazing asset to any company, and I am deeply appreciative that you shared it with Zoom. I am grateful for your imprint on Zoom’s legacy”.
The CEO said, that this layoff decision was taken to improve Zoom’s financial position as the investors wants sustainable earnings over time. Zoom’s revenue rises in the first years of pandemic, but with the changing times and end of COVID-19 emergency declarations Zoom’s stocks took a hit last year as people returned to their offices and schools.
Moreover, Yuan took responsibility by reducing his salary for the coming financial year by 98% and renouncing his 2023 corporate bonus. Salaries of Zoom’s executive leadership team members will also reduce by 20% for the year.