Silicon Valley Slump: Zoom to Lay Off 15% of Workforce
Zoom, which rose to prominence during the coronavirus pandemic as one of the most common video conference platforms in business and education, recently announced plans to lay off 1,300 employees, or 15 percent of its workforce.
CNBC reports that Zoom, a Silicon Valley darling during the pandemic, has announced plans to lay off 1,300 employees, or 15 percent of its workforce. The news was revealed in a blog post on the company’s website.
When people were forced to work from home due to the pandemic and used video chat software to stay in touch with coworkers, friends, and family, the business experienced a huge boom. The business faced difficulties despite its enormous success, and CEO Eric Yuan admitted that they “made mistakes.” He claimed that the business did not devote enough time to carefully examine its teams or determine whether they were expanding sustainably.
Yuan also revealed in the blog post that the cuts will impact all Zoom organizations and that those who are let go will receive up to 16 weeks of pay and health benefits. He emphasized that he, as CEO, is responsible for the errors and decisions made by the company, and he intends to demonstrate this responsibility through his own conduct. Yuan claims he intends to eliminate his 2023 company bonus and cut his own salary by 98 percent for the upcoming fiscal year.
The layoffs announced by Zoom are a part of a larger trend in the tech sector. Tech giants including Google, Facebook, Microsoft, and Saleforce have all recently laid off employees, and the trend is not likely to change.
Zoom’s stock ended the day up about 9.8% despite the layoff news, showing that investors are still optimistic about the company’s future. During the pandemic, Zoom has grown to be a crucial tool for businesses and individuals. Its development is anticipated to continue as the world settles into a new normal. To meet the needs of its customers, the company has been actively investing in new features and enhancing its capabilities.