In an announcement posted on the company's website on Tuesday, Zoom disclosed plans to lay off around 1,300 employees, or 15% of its workforce.
CEO Eric Yuan says the company must respond to the "uncertainty of the global economy" while society continues to adjust to life after the pandemic.
Zoom Is Coming Down From Its Pandemic Boom
When people had to work from home due to the pandemic and used video chat software to communicate with coworkers, friends, and family, Zoom saw substantial growth.
"We worked tirelessly and made Zoom better for our customers and users. But we also made mistakes," Yuan said.
Yuan adds that Zoom did not spend as much time as it should have analyzing its teams in-depth or determining whether it was expanding sustainably in the direction of its most important goals.
According to Engadget, Zoom's pandemic-driven development caused its employment to increase too quickly, tripling in size in just two years, the CEO said in a memo to employees.
Yuan stated that in order for Zoom to survive the current economic climate, serve its consumers, and realize its long-term mission, it must take a hard but crucial look within.
CNBC reports that all Zoom organizations would be affected by the downsizing, and employees who are let go will receive up to 16 weeks of pay and health benefits.
The CEO also announced he would forgo his 2023 corporate bonus and lower his own compensation for the upcoming fiscal year by 98%.
"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," Yuan wrote in a post.
The early stages of the pandemic were more closely associated with Zoom than with most other businesses since so many people used its platform to video chat with friends and coworkers while under lockdowns.
By the middle of 2020, Zoom claimed soaring income driven by a surge in commercial clients from the numerous organizations that were obliged to use remote workers.
Read More: PayPal to Layoff 2,000 Employees Over the Next Few Weeks
Zoom Follows Other Tech Companies And Their Recent Layoffs
Zoom is not the first epidemic darling to suffer a swift decline as Peloton, for instance, has gone through many rounds of layoffs, CNN Business notes.
A significant portion of Big Tech, which expanded quickly during the pandemic, has since announced layoffs as well.
Several other significant tech firms, including Amazon, Alphabet, Microsoft, Dell, and Spotify, have this year revealed massive layoffs or plans to lay off more employees than they initially anticipated.
With Dell announcing intentions to lay off 6,650 employees on Monday, Zoom's layoff announcement represents the most recent round of job losses in the tech sector.
CNBC reports that Google has also confirmed plans to fire more than 12,000 employees in January.
Microsoft published plans to lay off 10,000 staff members as well, while Salesforce disclosed plans to fire 7,000 staff members.
Additionally, eBay (EBAY) announced late Tuesday that it would eliminate 500 jobs worldwide, or about 4% of its workforce, during the next 24 hours.
Related Article: Amazon Sets For Another Round Of Layoffs Affecting 18,000 Employees
