Despite the COVID-19 pandemic, Zoom became a household name just weeks after it became a tech giant. Offices and schools started using the service and the company hired thousands of new employees. However, now that the pandemic growth spike has ended the company plans to lay off 1300 employees.
At the end of the pandemic growth Zoom began to notice a slowdown in its growth and profits soon began to fall forcing it to cut costs.
While announcing the layoffs, Zoom CEO Eric Yuan said that the company is also taking major salary cuts in order to survive the downturn in growth.
Zoom employees are continuing to rely on Zoom as the world transitions to life post-pandemic said CEO Yuan.
Hundreds of tech companies, such as Amazon, Salesforce, and Meta, have recently laid off employees in an effort to cut costs and restructure their organizations.
Just a month into 2023, more than 300 tech companies have fired around 100,000 employees, almost all of which followed a similar trajectory of growth and decline.
Zoom’s growth reached single digits by the end of 2022 after growing by about 55% in 2020.
Zoom share prices have also fallen more than 80% since they peaked in 2020. However, they spiked by 8% after layoffs and salary reductions were announced.
“As CEO and founder of Zoom, I am responsible for these mistakes and the actions we take today – and I want to demonstrate accountability both verbally and in action,” Yuan said.
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