Zoom, the tech company that rose to prominence during the Covid-19 pandemic as many businesses went remote, announced plans to lay off 1,300 employees on Tuesday.
In a message sent to Zoom employees on Tuesday, CEO Eric Yuan stated that the company must adapt to the “uncertainty of the global economy” and “its effect on our customers.”
Zoom stock was up more than 7% in afternoon trading.
“We worked hard to improve Zoom for our customers and users,” wrote Yuan in a Zoom blog. “However, we made mistakes and did not take enough time to analyze our teams or determine if our growth was sustainable and focused on the most important priorities.”
CEO Eric Yuan announced that Zoom will be laying off 15% of its workforce. The company saw rapid growth during the pandemic, as businesses relied heavily on their remote work services. Despite continued demand for their services post-pandemic, adjustments are needed, Yuan stated.
As a demonstration of accountability for any mistakes made at the California-based company, Yuan will be lowering his salary for the upcoming fiscal year by 98% and forgoing his 2023 bonus. The executive leadership team will also be reducing their base salaries by 20% and giving up their 2023 bonuses.