Zoom lays off 1,300 employees and CEO cuts 98% from his own salary

Zoom video conferencing platform announced the layoffs of approximately 1,300 employees, equivalent to 15% of its workforce. In an effort to contain costs, CEO Eric Yuan also announced that he will cut 98% of his salary in the next fiscal year.

According to the executive The cuts are a precaution with regard to the “post-pandemic world” regulations.. The company therefore needs to adapt to “the uncertainty of the global economy and its impact on customers.”

Zoom saw huge growth at the start of the pandemic in 2020 and has become one of the main ways people make video calls while at home. PThe company has tripled its staff to meet high demand..

“We work tirelessly and improve Zoom for our users, but we make mistakes. Justifying the layoffs, Yuan took longer than we needed to review our teams or assess whether we were growing sustainably towards our highest priorities.

The CEO explained in a statement that the cuts will affect all sectors of the company. However, the laid off employees will receive up to 16 weeks of salary and health insurance.

CEO cuts his own salary

Eric Yuan also announced that he will cut 98% of his salary in the next fiscal year in the US, which begins in March. In addition, the CEO will waive 2023 corporate bonuses.

With the decision, The company leader’s monthly salary will be $10,000, and annual compensation will be $500,000. Fiscal 2022 data shows the executive receives a monthly salary of $300,000 and annual compensation of $1.1 million.

“As the CEO and Founder of Zoom, I am responsible for these mistakes and the actions we take today. I want to show responsibility not only in words, but also in my actions,” Yuan said.