Zoom to lay off 1,300 workers as CEO takes pay cut
A simple search in Google using the words "economists forecast recession" reveals a mix of opinions regarding whether or not the United States is heading for a recession.
That being said, those working in the technology sector might be in the camp that believes it has already started.
Zoom experiencing post-pandemic shock
Zoom is the latest of the technology giants to make a massive cut to their staff, according to the Daily Mail.
As of Tuesday, the company has laid off 1,300 employees, which is about 15 percent of its workers.
Zoom CEO Eric Yuan said he will be taking a pay cut of 98 percent as the year progresses, which he says will bring his salary down to $22,000 this year.
He previously made $1.1 million.
Yuan notified the employees who were impacted by the layoffs via email on Tuesday.
He also noted that executives who remain with the company will take a 20 percent pay cut and will not receive their annual bonuses for 2023.
The company saw massive gains during the pandemic, experiencing growth that tripled its size within a two year period, according to ABC News.
"As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom," he said in a memo to employees. "But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves so we can weather the economic environment."
He added that while they needed to rapidly increase staff during the pandemic, the company had not taken into consideration how that rapid growth could continue to be sustained afterwards.
The post-pandemic world wasn't relying on Zoom in the same way as it had during the pandemic.
Post-pandemic economy shifting consumer demand
Tech companies in general had something of a rally in regard to needing to increase staff during the pandemic, according to Investopedia.
So as the economy shifts back toward pre-pandemic demands, much of that growth is receding.
Other big name tech companies that overhired and have now had significant layoffs include PayPal (about 2000 employees), IBM (about 3,900 employees), Google (about 12,000 job cuts), and Microsoft (about 10,000 employees) to name a few, according to ABC news.
Other industries that are anticipated to experience significant layoffs include the real estate industry, investment banks, digital publishing companies and digital retailers.
A few notable companies in these industries that have already had layoffs include Spotify (about 600 employees), Dotdash Meredith (about 274 employees), eBay (about 500 people) and Amazon (about 18,000 roles) to name a few.