Published , by Donovan Erskine
Published , by Donovan Erskine
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.
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.