Zoom CEO waives 98% of pay after laying off 1,300 employees
Video conferencing service cuts 15% of staff and salary of top management
Zoom CEO Eric Yuan informed staff via email that he would reduce his personal pay by 98% and reject a bonus in light of the company’s decision to lay off approximately 1,300 employees globally.
Zoom, a firm that provides video communications, experienced explosive growth due to the pandemic and a shift in work-from-home lifestyle. The California-based business was started by Yuan in 2011. In October 2020, the company’s shares hit a high of $559 per share.
In his letter to the workforce, Yuan mentioned the pandemic rollercoaster as the cause of the cuts. In order to handle this demand and support ongoing innovation, Zoom tripled in size within a 24-month period, he claimed.
We didn’t spend as much time as we ought to have doing a full analysis of our teams or determining whether we were expanding sustainably, in the direction of our top priorities, he continued.
According to Bloomberg, Yuan made a base salary of $301,731 last year. His pay will be $10,000 after the reduction.
According to the document, other corporate officials would similarly experience 20% salary cuts and forfeit bonuses for the future year.
Zoom employees who have been laid off will receive up to 16 weeks of pay and healthcare.
