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Zoom Shares Rise After Company Cuts 15% of Staff

Shares of Zoom were up Tuesday!

That after the video conferencing company said it was laying off about 15% of its staff, or about 1,300 employees.

CEO Eric Yuan wrote that the decision was “tough but necessary” in a blog post announcing the cuts.

Tweet on Zoom shares

FactSet Zoom Chart

Zoom is just the latest tech company to announce layoffs. Google parent Alphabet, Amazon and Microsoft are also among the companies that have recently announced layoffs.

Zoom said the layoffs, which amount to around 1,300 jobs, would come alongside a 98% pay cut for CEO Eric Yuan, who will also forego his fiscal 2023 bonus. Zoom’s leadership team will also reduce their salaries by 20% for the coming fiscal year, and bypass bonus payments as well.

“Over the past few years, Zoom has become an indispensable source of connection for businesses and individuals as well as a globally recognized brand,” Yuan said in a post on the company’s official blog. “Whether you have been at Zoom since the beginning or joined us more recently, you’ve played an important role in our evolution, and that makes today’s announcement particularly difficult.”