Zoom Video Communications Inc. dismisses more than 150 jobs

Zoom surpasses projections on strong product demand and announces share buybacks
Zoom surpasses projections on strong product demand and announces share buybacks

Zoom Video Communications Inc. cut over 150 jobs this week, adding to a wave of layoffs by technology companies at the start of 2024.

Zoom Video Communications Inc. eliminated approximately 150 jobs last week, adding to a wave of labor reductions by technology companies at the start of 2024.

Employee departures at the company known for its video conferencing software account for fewer than 2% of its personnel, according to a source familiar with the situation. The reductions are not business-wide, and Zoom will continue to hire in areas such as artificial intelligence, sales, and engineering in 2024.

“We regularly evaluate our teams to ensure alignment with our strategy,” said a Zoom representative. “As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future.”

Zoom has struggled to maintain significant revenue growth after becoming well-known during the pandemic.

The company has sought to extend beyond its video meeting service by offering a wider portfolio of services for enterprises, such as contact center software and persistent chat comparable to Salesforce’s Slack. Zoom Phone, one of the company’s most major secondary bets, has recently reached 7 million paid subscribers. Still, these newest offers haven’t considerably accelerated growth.

Zoom announced in February that it would reduce headcount by 15%, bringing its total workforce to slightly more than 7,000 from over 8,500. Since January 2023, the San Jose, California-based corporation hasn’t reported its total headcount.

A new round of job cutbacks at the start of the year demonstrates how tech corporations have become more agile in dismissing employees and shifting priorities.

Several well-known companies, including Microsoft Corp., Alphabet Inc.’s Google, Amazon.com Inc., and Salesforce Inc., have announced employment reductions. Separately, on Thursday, software developer Okta Inc. said that it would lay off 7% of its workforce to cut costs.

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