One of tech’s most blasting successes, Zoom became a household name just weeks after the COVID-19 pandemic started to set in. Both offices and schools started using the service and the company soon hired thousands of new employees however now that the pandemic growth spike has ended, the company has plans to lay off around 1300 employees.
growth spike, Towards the end of the pandemic growth spike, Zoom noticed a major slowdown in it’s growth and profits soon started to fall thus forcing the company to take cost cutting measures.
Zoom CEO Eric Yuan, while announcing the layoffs said that he and other leaders at Zoom are also taking major salary cuts, so that the company can sail its way through the growth decline.
“As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom,” said CEO Yuan in his message to Zoom employees.
Zoom is now one of the hundreds of tech firms that recently laid off employees in an attempt to cut costs and restructure their organizations. Examples include industry giants such as Amazon, Salesforce and Meta.
According to data, just around a month into 2023, more than 300 tech firms have fired around 100,000 workers, almost all of which followed a similar trajectory of sharp growth and decline.
After noticing about 55% growth in 2020, Zoom’s growth reached single digits towards the end of 2022 thus profits also went down.
In just over 2 years from their peak value in 2020, Zoom share prices have also gone down more than 80%. However the share prices jumped up by 8% when the company made announcements for layoffs and salary deductions.
“As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today – and I want to show accountability not just in words but in my own actions,” said Yuan.
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