Zoom to shed about 1,300 jobs as pandemic-fueled demand slows

Zoom Video Communications Inc (ZM.O) said on Tuesday it would cut about 1,300 jobs, as demand for the company’s video conferencing services slows with the waning of the pandemic, and take a related charge of up to $68 million.

The company’s shares, which fell 63% last year amid a rout in technology shares, closed up 9.9% on the news but were down marginally in extended trading.

While announcing the layoffs, which will hit nearly 15% of its workforce, Chief Executive Officer Eric Yuan said he would take a pay cut of 98% 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,” Yuan said.