The technology sector began the year with a tsunami of layoffs, about 50,000 in the month of January alone. Video communications firm Zoom is the latest tech firm to lay off employees. This month does not seem to be slowing down for tech firms to cut jobs.
Zoom cut more than 1,300 jobs
The video-conferencing firm is removing around 1,300 positions, or 15% of its employees.
In a blog post published recently, Zoom CEO Eric Yuan said that the firm increased employees during the COVID-19 epidemic when companies grew more dependent on the company’s services as more individuals working from home. Yuan said that Zoom tripled in size in 24 months to meet demand.
After the epidemic, the executive said that companies continue to rely on the company’s service, although modifications are necessary.
“Each organization across Zoom will be impacted by these changes,” Yuan stated.
He said that he would reduce his income for the next fiscal year by 98% and forfeit his corporate bonus in 2023, citing his responsibility for the company’s errors and the subsequent steps. The senior leadership team of Yuan will also reduce its base pay by 20% for the next fiscal year and renounce its corporate incentives for 2023.
Other tech firm to cut jobs recently
Yuan continued that those who will be affected by the retrenchment will be offered various support such as salary and healthcare coverage for up to 16 weeks, and an annual bonus for 2023 based on company performance, among others.
Meanwhile, the computer manufacturer Dell also announced that it would eliminate around 6,600 positions.
The computer manufacturer decreased its workforce by 5%, or around 6,600 positions, claiming that the measures it had taken to remain abreast of deteriorating market circumstances were no longer sufficient.