(New York) The online video platform Zoom announced on Tuesday a social plan which provides for the layoff of 15% of its workforce, or around 1,300 people, which the group justifies by “global economic uncertainty” and the post- COVID-19.
Emblem of teleworking during the first months of the coronavirus pandemic, Zoom had seen its growth explode in the spring of 2020, driven by virtual, work or family meetings.
Its turnover had thus quadrupled that year, while the start-up from San Jose (California) became a global brand.
In two years, Zoom has tripled its workforce “to meet demand”, recalled Eric Yuan, general manager of the group, in a message posted on its site.
But in doing so, according to him, the company did not “take enough time” to analyze its needs and “to ensure that its growth was sustainable”.
“Global economic uncertainty and its effects on our customers” have prompted Zoom to “do a recalibration so that we can face the current economic environment”, argued the leader.
The return, full or part-time, of employees to the office as well as the end of confinements had already significantly slowed Zoom’s progress.
“I must be held accountable for these mistakes,” said the managing director and founder of the company, who will consequently reduce his salary by 98% and waive his bonus.
In addition, Zoom executives will see their salaries cut by 20% for the current accounting year and be deprived of bonuses.
The video platform is targeting revenue of between $4.37 billion and $4.38 billion for its entire staggered fiscal year 2023, which closed in late January, which would represent growth of between 6.5% and 6.8 %, compared to 54% the previous year.
Zoom joins the long list of flagships in the technology sector which have resorted to layoffs in recent months to take into account the deterioration of the economy, linked to the cycle of monetary tightening by central banks.