Zoom, the video conferencing company that became a household name during the Covid-19 pandemic amid the uptick in remote working, is laying off 1,300 employees, or about 15 per cent of staff as the technology industry continues to cut back on a hiring surge during the global health crisis.
Zoom’s founder and chief executive Eric Yuan said the world continues to transition to life post-pandemic and that people and businesses continue to rely on the video conferencing company but also cited the uncertainty of the global economy.
"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, deliver for our customers and achieve Zoom’s long-term vision," Mr Yuan said in a statement.
After growing three times in size within 24 months to manage demand during the pandemic, Zoom's layoffs, announced late Tuesday, will affect all departments across the company, he said.
"I know this is a difficult message to hear, and certainly not one I ever wanted to deliver. If you are a US-based employee who is impacted, you will receive an email to your Zoom and personal inboxes in the next 30 minutes that reads [IMPACTED] Departing Zoom: What You Need to Know," Mr Yuan said.
"For those Zoomies waking up to this news or reading this after normal work hours, I am sorry you are finding out this way but we felt it was best to notify all impacted Zoomies as soon as possible."
Zoom's share price is up about 27 per cent since the start of this year after falling about 41 per cent over the past year. It gained about 10 per cent at the close of trading on Tuesday to $84.66.
The layoffs follow similar cutbacks at Big Tech companies that have shed thousands of jobs amid rising interest rates aimed at reducing inflation and growing fears of a recession in the US.
After a hiring frenzy following the onset of the Covid-19 pandemic, as a result of the pivot to digitalisation, companies such as PayPal, Spotify, Meta, Amazon, Microsoft, Twitter, IBM and Google's parent Alphabet have fired thousands of employees.
As part of the company's restructuring Mr Yuan said he will take a 98 per cent pay cut and will be forgoing his corporate bonus for the company's fiscal 2023 year.
Mr Yuan earned $1,115,089 in total compensation last year, according to proxy statements filed for the 2022 fiscal year. Of this total $301,731 was received as a salary, $13,224 was received as an incentive bonus and $800,134 came from other types of compensation.
Mr Yuan has 19,265 unexercised stock options that are exercisable at a $4.15 share price by September 24, 2023, in addition to 23,560 exercised options that are unexercised at the same value. He also has 113,425 unexercised stock options that are exercisable at a $3.77 share price by September 24, 2023. All of the aforementioned options were granted in 2018.
In the event of termination or change of leadership that dislodges Mr Yuan from his position as chief executive, he stands to earn about $12.7 million in severance pay, according to the proxy statements. His net worth as of February 8 has increased about 8 per cent to $4.1 billion, according to Forbes estimates.
"I am accountable for these mistakes and the actions we take today – and I want to show accountability not just in words but in my own actions," he said.
Zoom's executive leadership team will also take a 20 per cent cut in their base salaries for the coming fiscal year and also forfeit their corporate bonuses.
In November, Zoom’s net profit attributable to common stockholders plunged 86 per cent in its fiscal third-quarter to $48.4 million, from the same period a year earlier.
While companies in the US let go of 363,824 jobs in 2022, 13 per cent more than in 2021, the technology sector was the leading job-cutting industry last year, according to Chicago-based global employment company Challenger, Gray & Christmas.
A total of 97,171 jobs were cut in the technology sector last year, a 649 per cent increase from 2021 — the highest since the dot-com crash that began in 2000, a survey by the company showed.
Last week, the International Monetary Fund changed course and raised its global economy outlook estimate for the first time in a year, projecting that the world economy will expand by 2.9 per cent this year.
The US, the world's largest economy, is now set to avoid a recession and is projected to grow 1.4 per cent in 2023, after growing 2 per cent last year and 5.7 per cent in 2021.
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Griselda
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Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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More from our neighbourhood series:
How it works
Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.
Round by round, the player expands their empire. The more land they have, the more money they can take from their coffers for each go.
As unruled land and soldiers are acquired, players must feed them. When a player comes up against land held by another army, they can choose to battle for supremacy.
A dice-based battle system is used and players can get the edge on their enemy with by deploying a renowned hero on the battlefield.
Players that lose battles and land will find their coffers dwindle and troops go hungry. The end goal? Global domination of course.
If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Killing of Qassem Suleimani
Killing of Qassem Suleimani
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
Company profile
Date started: Founded in May 2017 and operational since April 2018
Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.
Based: Cairo, Egypt
Sector: Health-tech
Size: 22 employees
Funding: Seed funding
Investors: Flat6labs, 500 Falcons, three angel investors
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Abu Dhabi card
5pm: Handicap (TB) Dh100,000 2,400m
5.30pm: Wathba Stallions Cup Handicap (PA) Dh 70,000 2,200m
6pm: Abu Dhabi Fillies Classic Prestige (PA) Dh110,000 1,400m
6.30pm: Abu Dhabi Colts Classic Prestige (PA) Dh110,000 1,400m
7pm: Handicap (PA) Dh85,000 1,600m
7.30pm: Maiden (PA) Dh80,000 1,600m
The National selections:
5pm: Valcartier
5.30pm: AF Taraha
6pm: Dhafra
6.30pm: Maqam
7pm: AF Mekhbat
7.30pm: Ezz Al Rawasi
