Tech company Zoom to slash job for 1,300 employees, 98 per cent pay cut for CEO

Tech Company Zoom's Chief Executive Officer (CEO) Eric Yuan has announced that it will lay off about 1,300 employees, or approximately 15 per cent of its staff.

With this announcement, Zoom has become the latest tech company to do so and as per Eric Yuan, the layoffs will impact every part of the organization.

In a message to its employees, Eric Yuan termed it a tough decision but also said that it was necessary.

"We have made the tough but necessary decision to reduce our team by approximately 15 per cent and say goodbye to around 1,300 hardworking, talented colleagues," Eric Yuan wrote.

He further stated that he ad other executives will take a significant pay cut.

Besides this, in the message to employees, he admitted to making ''mistakes'' in how quickly the company grew during the pandemic.

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," Eric Yuan wrote.

''I am reducing my salary for the coming fiscal year by 98 per cent ad foregoing my FY23 corporate bonus. Members of the executive leadership team will reduce their base salaries by 20 per cent for the coming fiscal year while also forfeiting their FY23 corporate bonuses,'' he added.

He further informed that a US-based employee who is impacted will receive an email to his/her Zoom personal inboxes in 30 minutes.

 "If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know. Non-US employees will be notified following local requirements," he added.

''For those Zoomies walking up to this news or reading this after normal work hours, I am sorry you are finding out this way but we felt it was best to notify all impacted Zoomies as soon as possible,'' he said.

Commenting on the growth of the company, Eric Yuan said that within a span of 24 months, the company grew to manage this demand while enabling continued innovation.

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