Lay-off Mania

Zoom will join big tech companies in the mass lay-off scheme fueled by less-than-anticipated demand. On Tuesday, Zoom Video Communications stated its intent to cut around 1,300 jobs, incurring a charge of about $68 million dollars. Zoom’s shares closed about 9,9% higher but did suffer losses in extended trading. As these cuts affected about 15% of Zoom’s workforce, Eric Yuan, Zoom’s Chief Executive Officer, said he personally would be taking more than a 90% pay cut and refrain from taking any bonuses. Departing employees will also receive health coverage, a bonus, and 16 weeks of pay.

It seems as though Covid-19 demand has deterred big tech companies such as Google, Microsoft, and Zoom into thinking that sustained high demand was probable in the future. However, amidst economic tensions and easing Covid-19 restrictions, these predictions have failed to materialize, costing these giants millions of dollars.

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