“We have made the difficult but necessary decision to downsize our team by approximately 15 percent and say goodbye to approximately 1,300 hard-working, talented colleagues,” wrote Eric Yuan.
Yuan stated that he and other executives will take a significant pay cut. In the message to employees, he admitted to making “mistakes” about how fast the company grew during the pandemic.
“As CEO and Founder of Zoom, I am responsible for these mistakes and the actions we take today — and I want to show responsibility, not just in words, but in my own actions,” Eric Yuan wrote.
He added: “As a result, I am cutting my salary for the coming fiscal year by 98 percent and waiving my FY23 corporate bonus. company bonuses forfeit.”
In a message to employees, Eric Yuan stated that a US-based employee who is impacted will receive an email in their Zoom and personal inbox within 30 minutes. He further stated that non-US employees will be informed after following local requirements.
Eric Yuan wrote, “If you are a US-based employee who is impacted, you will receive an email in your Zoom and personal inbox within 30 minutes saying [IMPACTED] Departing Zoom: What You Need to Know. Non-U.S. employees will be notified according to local requirements.”
“For those Zoomies waking up to this news or reading this after normal working hours, I’m sorry you found out this way, but we felt it was best to notify all affected Zoomies as soon as possible” he added.
Yuan stated that during the early days of the pandemic, the company was staffed “quickly” to support increasing demand as people started using Zoom to video chat with friends and colleagues. He wrote, “Within 24 months, Zoom has grown 3X to meet this demand while enabling continued innovation.”
To those affected by the US layoffs at Zoom, the company will provide up to 16 weeks of salary and health coverage, payment of earned FY’23 annual bonus based on company performance, RSU and stock option vested for six months for US employees and by August 9, 2023, for non-U.S. employees.
Furthermore, departing employees will receive outplacement services, including 1:1 coaching, workshops, networking groups and more. Additionally, support for Zoom employees outside the US will be similar.
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