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Zoom CEO Eric Yuan emailed to employees On Tuesday, he cut his salary by 98% and will receive no bonuses amid an announcement of layoffs at a company that affects about 1,300 workers worldwide.
“As Zoom’s CEO and founder, I take responsibility for these mistakes and for my actions today,” Yuan told employees.
“I want to show responsibility with my actions, not just words,” he added.
Video communications company Zoom experienced rapid growth due to the pandemic and shift to a work-from-home culture. Yuan founded the California-based company in 2011. At its peak in October 2020, the company’s share price was $559 per share.
Related: How Zoom won 2020 in response to surge in demand
But like many companies that surged during the crisis, it made a rough landing — its stock is now trading at about $80 a share (up about 10% after the layoff announcement). bottom).
In a message to staff, Yuan cited the pandemic roller coaster as the reason for the cuts. “Within 24 months, Zoom has tripled in size to manage this demand while allowing for continued innovation,” he said.
“We didn’t spend as much time as we needed to thoroughly analyze the team or assess whether we were making sustained progress towards our top priorities,” he added.
Zoom is the latest technology company to announce major layoffs. Amazon, Google, and Meta have all laid off thousands of employees in the last four months.
RELATED: Google lays off 12,000 workers due to ‘difficult economic cycle’
His original base salary last year was $301,731. According to BloombergThe cut reduces his salary to $10,000.
Other executives at the company will also take a 20% pay cut and waive their bonuses next year, the filing added.
The laid-off “Zoomies” will receive “up to” 16 weeks of salary and medical care, at least in the United States.
Other tech company CEOs have cut salaries, even though their base salaries are much higher. Tim Cook cut his salary by 40% to $43 million. per CNBC.
Goldman Sachs CEO David Solomon 29 cut him% to $25 million.