Zoom Video Communications is planning to cut about 1,300 jobs, as demand for the company’s video conferencing services slows, and take a related charge of up to $68 million.
The layoffs will hit nearly 15 percent of its workforce. Zoom Chief Executive Officer Eric Yuan said he would take a pay cut of 98 percent for the coming fiscal year and forego his bonus.
“We worked tirelessly… but we also made mistakes. We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities,” Eric Yuan said.
Zoom will incur about $50 million to $68 million in charges related to the layoffs. The video conferencing services company said a substantial part of it will be spent in the first quarter of fiscal 2024.
The video conferencing software maker said that its executive leadership team will reduce their base salary by 20 percent in the same period.
Departing employees will receive 16 weeks of salary, healthcare coverage and a bonus for the year.
