Zoom has made a round of layoffs but said it has not paused hiring as it continues to build out new tech.
First reported by Bloomberg, Zoom confirmed that cuts hit less than two percent of its workforce, far fewer employees than its larger cull last February.
Zoom said in a statement: “We regularly evaluate our teams to ensure alignment with our strategy.
“As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future.”
Zoom last reported quarterly numbers in November, when it revealed revenue beat expectations and raised revenue forecasts for the financial year.
The firm is due to report its next set of numbers at the end of this month.
Hybrid Work
Zoom has been reshaping its business as people and organisations adjust to a post-pandemic world.
In February last year, Zoom announced a restructuring plan involving the elimination of approximately 1,300 jobs, constituting around 15 percent of its workforce.
The San Jose-based company experienced a surge in demand for its video-conferencing services during the pandemic but is now facing a slowdown in demand. The layoffs are expected to result in costs of $50-68 million for redundancy packages and charges.
CEO Eric Yuan acknowledged missteps, stating that the company had not thoroughly analysed its teams and growth sustainability.
Yuan attributed the decision to the uncertainty of the global economy and its impact on customers, emphasising the need for a self-assessment to navigate the economic environment and achieve Zoom’s long-term vision.
Yuan also announced a drastic reduction in his salary by 98% for the upcoming fiscal year and forgoing his FY23 corporate bonus.
Meanwhile, in August, Zoom ordered staff back to the office.
The firm said it believed a “structured hybrid approach” was most effective and people living within 50 miles (80km) of an office should work in person at least twice a week.
Zoom, at one point, had said staff would be able to work remotely indefinitely.
The tech firm said the new policy would be rolled out in August and September, on a staggered timeline that varied by country.
It said it would continue to “hire the best talent, regardless of location”, adding that the new policy, which was first reported by Business Insider, would put the company in a “better position to use our own technologies, continue to innovate, and support our global customers”.
