‘We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues,” said CEO Eric Yuan.
Zoom Video Communications (ZM) – Get Free Report shares powered higher Tuesday after the video conferencing specialists said it would slash around 15% of its global workforce, adding to a savage start to the year for tech job losses.
Zoom said the layoffs, which amount to around 1,300 jobs, would come alongside a 98% pay cut for CEO Eric Yuan, who will also forego his fiscal 2023 bonus. Zoom’s leadership team will also reduce their salaries by 20% for the coming fiscal year, and bypass bonus payments as well.
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“Over the past few years, Zoom has become an indispensable source of connection for businesses and individuals as well as a globally recognized brand,” Yuan said in a post on the company’s official blog. “Whether you have been at Zoom since the beginning or joined us more recently, you’ve played an important role in our evolution, and that makes today’s announcement particularly difficult.”
‘We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues,” he added. “I know this is a difficult message to hear, and certainly not one I ever wanted to deliver.”
Zoom shares were marked 7.8% higher in early afternoon trading following the job cuts announcement to change hands at $83.11 each.
Late last year, Zoom said adjusted profits for the three months ending in October were pegged at $1.07 per share, firmly ahead of Street forecasts, as revenues rose 5% to a Street-beating 1.1 billion.
Looking into the final months of 2022, however, Zoom said it sees revenues in the region of $1.095 billion and $1.105 billion, just shy of Refinitiv estimates, with a lower-than-expected tally of between $4.37 billion and $4.38 billion for the coming fiscal year.
