Zoom Video Communications on Tuesday announced that it would cut 15% of its workforce, or about 1,300 jobs, and trim base pay for its executive leadership as pandemic-fueled demand for the company’s video conferencing services slows.
A day after the company’s decision, Christy Flis, head of global education and head of women at Zoom, expressed her disbelief of being included in the laid off list of people.
Flis in a LinkedIn post said, “It is with utter disbelief and shock that I was included in today’s Zoom’s layoffs – as I was just approaching 8-years in 10-days…I can’t even believe I’m writing this or that this is really happening…in addition to seeing so many of our exceptional Zoomies also being part of this…”
“After my continual year over year success in building our education business, building rapport and critical capabilities that allowed our education business and overall business to scale, leading an incredible team for Women at Zoom, our first employee resource group, who is currently in planning for WHM and IWD, building and leading our US/Canada Education Vertical and Higher Education to great success, setting the groundwork for our International business, and for all of the work cross-functionally internally and externally, for current growth in revenue, and for being a loyal and all-time carrier of our culture of care, It does not make any sense…and yet here we are.”
“My heart goes out to my fellow community. My gratitude goes out to all of my clients, partners, friends and colleagues here that helped create absolutely magic in a world that prefers to believe in a scarcity and fear based mindset. Keep the abundance mindset alive and well…even amidst this type of news,” she wrote.
Announcing the layoffs, chief executive Eric Yuan had said that he will take a salary cut of 98% for the coming fiscal year, foregoing his fiscal 2023 corporate bonus.
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“We worked tirelessly… 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,” the top boss said.
Analysts are forecasting Zoom’s revenue to have risen just 6.7% in fiscal 2022 after a more than four-fold jump in revenue and a nine-fold surge in profit increase in 2021. Profit is estimated to have fallen 38% in 2022, Reuters reported.
Zoom had bumped up hiring during the pandemic to meet surging demand, but now joins U.S. companies is reining in costs to brace for a potential recession.
The video conferencing software maker also said that its executive leadership team will reduce their base salary by 20% in the same period.
Departing employees will receive 16 weeks of salary, healthcare coverage and annual bonus for the year, Yuan added.
A raft of U.S. companies from Goldman Sachs Group Inc to Alphabet Inc have laid off thousands this year to ride out a demand downturn wrought by high inflation and rising interest rates.
(With inputs from Reuters)
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