Zoom (ZM) to lay off 15% of workers
The video communication company is cutting 1,300 jobs.
Zoom saw a massive boom during the worst days of the pandemic, with major companies and academic institutions turning to the video communications platform for meetings, classes, and casual hangouts. Today, it appears that business isn’t booming as well as it once was. Zoom Communications Inc. has announced that it will be laying off 1,300 employees.
Zoom CEO Eric Yuan shared a blog post in which he announced the upcoming layoffs at the company. He talks about the company’s highs during the height of the COVID pandemic, as well as middling performance in recent quarters. Yuan implies that Zoom expanded its business too fast, a critical mistake that led to today’s unfortunate news. It echoes a common sentiment among companies that have made similar layoffs.
Source: Getty Images
Zoom stock peaked at $559.00 per share in October 2021, and currently sits at $84.66.
This follows the unfortunate trend we’ve seen in the tech and gaming space as of late, with several of the industry’s largest companies laying off employees. This included Microsoft, Google, and Amazon. Interestingly enough, Nintendo shared earlier today that it would actually be raising employee wages by 10 percent. As we continue to monitor the business moves of the biggest companies, stick with Shacknews.
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replyDonovan Erskine posted a new article, Zoom (ZM) to lay off 15% of workers
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They have a product that everyone started using and it does one thing well. How did they fuck this up?
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Layoffs don't necessarily mean they messed up. They can be cynical and greed-driven.
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On the other hand, if the firings don't harm the company long term, then the employees probably weren't needed?
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Because it's a shit solution, has been full of security holes and at my very large global company banned from being used unless absolutely needed. I have to use it for one vendor call a month and it's god awful.
Also MS including Teams in O365 pretty much kills people wanting to pay more for zoom.-
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I'm not even a huge fan of Teams but I have run and or join 15+ meetings a week in Teams involving people outside our org and inside connecting from the other side of the world and nobody has even not been able to join.
Zoom has been fine for the one vendor I need it for but the overall app / experience is not as good as Teams. It's a fine solution if you need a meeting w a family member or just something quick like that but like Shirif said it's ass in an enterprise setting. -
it really isn't, and they are trying to sell me on Zoom Phone too, which I'm guessing is a massive part of the layoffs
teams surpassed it long long ago, the ONLY thing zoom had going for it was larger rooms. now it's about quality, and zoom looks and sounds like shit compared to teams -
lol what. I’ve never had a problem using M365 client.
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Everyone started using it suddenly so they had to staff up to meet customer needs. But now some amount of pandemic usage has disappeared, along with competitors taking some market share.
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Kinda shocked to read this in the blog post:
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. To that end, I am reducing my salary for the coming fiscal year by 98% and foregoing my FY23 corporate bonus. Members of my executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses.
Some will say this isn’t enough but frankly it’s so rare to see company leadership take any responsibility these days that I think it’s worth mentioning here-
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He's already a billionaire.
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That's cool of them. Our CEO admitted to it being his fault for having to let 30% of the company go, though he didn't take any reduction in pay or anything. The severance packages were decent though, 46 folks let go with the severance packages expected to cost somewhere between $1.5M-2.5M. I forget what our initial runway was prior to this, but this will allow us to make it to Q1 of 2025. :/
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Ebay let a few go today too. Here's all the layoff info you'll ever need https://layoffs.fyi/
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