Companies & Markets

Zoom cuts jobs in latest move by tech industry to shed workers

Published Fri, Feb 2, 2024 · 06:49 AM

ZOOM Video Communications cut about 150 jobs this week, adding to a wave of workforce reductions by technology companies at the onset of 2024.

The employee departures at the company known for its videoconferencing software amount to less than 2 per cent of its workforce, according to a source familiar with the matter. The reductions are not companywide and Zoom will continue to add people in 2024 in areas such as artificial intelligence, sales and engineering, said the source, who asked not to be identified discussing internal company strategy.

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

After vaulting into public consciousness during the pandemic, Zoom has struggled to maintain high revenue growth. The company has worked to move beyond its video meeting service by offering a wider suite of applications for businesses, such as contact centre software and persistent chat similar to Salesforce’s Slack. Zoom Phone, one of the company’s most important secondary bets, recently hit seven million paid users. Still, these newer offerings have yet to significantly accelerate growth.

Zoom said in February that it would reduce headcount by 15 per cent, bringing its workforce to just more than 7,000 from about 8,500. The San Jose, California-based company has not disclosed its total headcount since January 2023.

A new wave of job cuts at the start of the year show how tech companies have become quicker than in the past to dismiss workers and quickly shift priorities. A slew of marquee names such as Microsoft, Alphabet’s Google, Amazon.com and Salesforce have announced workforce reductions. Separately on Thursday (Feb 1), software company Okta said it would eliminate 7 per cent of its staff to reduce costs. BLOOMBERG