Zoom Video Communications announced it was laying off 1,300 employees, or 15% of its workforce, in order to “weather the economic environment” on Tuesday. Zoom CEO Eric Yuan issued a company-wide email in which he admitted responsibility for the errors that resulted in the layoffs and said that he would forgo his corporate bonus and have his compensation reduced by 98 percent for the upcoming fiscal year.
Yuan claimed that during the pandemic, the video conferencing platform experienced unheard-of growth and quickly increased staff to meet the rising demand. The email read, “We worked tirelessly and made Zoom better for our customers and users. But we also made mistakes. We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities.”
Layoffs would affect every Zoom organisation, according to Yuan, who also announced a drastic pay cut of 98 percent for himself. He informed staff that members of the executive leadership team would forfeit their 20 percent corporate bonus for 2023 as well as their base wages.
According to a report, Yuan made $1.1 million in total remuneration last year, with a basic salary of $301,731. The Zoom CEO’s new remuneration for 2023 would be $6,034.62 after the 98 percent pay drop.
“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,” Eric Yuan told employees in his email.
He described the employee departure procedure. Employees who are laid off from Zoom in the US will receive 16-week pay, health insurance, and outplacement services including 1:1 coaching, workshops, networking groups, and more.
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