Zoom Announces Cuts to 15% of Staff

Zoom has announced the decision to cut 15% of its staff, or 1,300 people, due to economic uncertainty brought on by the pandemic. CEO Eric Yuan has taken accountability for the decision, reducing his salary by 98% and forgoing a bonus, while another executive leadership is cutting their pay by 20% and also declining their bonuses. 

The decision to slash staff comes after Zoom experienced five straight quarters of triple-digit year-over-year growth. After the company's last reported quarterly earnings in November, revenue had increased 5% year-over-year to $1.1 billion, with online revenue dropping 9% and enterprise revenue increasing 20% to $614.3 million. Zoom also reported $272. 6 million in free cash flow. 

Those affected by the layoffs will receive up to 16 weeks' salary and health insurance, as well as a bonus for the past year. They will also have access to the vesting of stock options and services to help them find new jobs.

In conclusion, Zoom's decision to reduce staff by 15% comes as its growth has slowed, following a period of immense success due to the pandemic. The company is doing its best to make the layoffs as cushioned as possible, with benefits and services to aid those affected in finding new employment.