Zoom is cutting hundreds more jobs as conditions fail to improve

Zoom is cutting hundreds more jobs as conditions fail to improve

Zoom has announced another round of layoffs reportedly pushed by its investors’ desire for greater efficiency in response to an evolving market and a continually tough economy.

The video conferencing company announced it would be making 150 workers redundant, accounting for around 2% of its current headcount, according to CNBC.

This isn’t the company’s first layoffs, as the company revealed a significant 15% cut affecting 1,300 workers back in February 2023.

Zoom revealed more job losses

A Zoom spokesperson is reported to have told CNBC that the company continues to hire in key areas, suggesting that the announcement could be part of a restructuring move rather than a sudden reaction to the economy.

However, the fact that a company that has seen as much success as Zoom is having to rethink its workforce is a troubling sign. With workers globally sent home during the pandemic, the need for hybrid working tech like video conferencing software skyrocketed, with many businesses and individuals turning to Zoom.

Despite increasing ninefold to an October 2023 all-time high of around $559, Zoom shares have once again plummeted to pre-pandemic levels.

The reduction follows an alarming trend in the tech industry, with major players like Microsoft, Google, and Amazon all announcing job cuts in recent weeks.

At the same time, identity management provider Okta confirmed a larger layoff of around 400 staff, or 7% of its workforce. Speaking about the decision, CEO Todd McKinnon declared that the company’s costs had become too high. Shares in Okta have had a turbulent year, and it’s been hard to draw a trend from the heavy fluctuations.

TechRadar Pro asked Zoom and Okta to share more context about their decisions.

In an email later seen by TechRadar Pro addressed to company employees, Okta CEO Todd McKinnon confirmed the decision to lay off “approximately 400 people,” citing a need to “grow profitability” and “run the business with greater efficiency.”

McKinnon added that the measure was a proactive one aimed at setting up the company for long-term success, confirming a number of financial and further support packages for affected workers.

Zoom did not immediately respond to our email. Any update will be posted here.

More from TechRadar Pro

https://www.techradar.com/rss

Craig Hale

Leave a Reply