Zoom Video Communications Inc has cut around 150 jobs this week, contributing to a trend of workforce reductions among technology companies at the beginning of 2024. This amounts to less than 2% of its workforce, as stated by a person familiar with the matter. However, it’s worth noting that the reductions are not companywide, and Zoom plans to continue adding people in areas such as artificial intelligence, sales, and engineering in 2024.
A spokesperson for Zoom mentioned, “We regularly evaluate our teams to ensure alignment with our strategy. As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future.”
Despite gaining widespread recognition during the pandemic, Zoom has faced challenges in maintaining high revenue growth. The company has worked on expanding its range of applications for businesses, including contact center software and persistent chat similar to Salesforce’s Slack. Zoom Phone, one of the company’s significant secondary bets, recently reached seven million paid users. However, these newer offerings have not yet significantly accelerated growth.
In February, Zoom announced that it would reduce headcount by 15%, bringing its workforce to just over 7,000 from about 8,500. The company, based in San Jose, California, has not disclosed its total headcount since January 2023.
The recent wave of job cuts at the beginning of the year demonstrates how tech companies have become quicker to dismiss workers and shift priorities. Notable names such as Microsoft Corp, Alphabet Inc’s Google, Amazon.com Inc, and Salesforce Inc have also announced workforce reductions. Additionally, software company Okta Inc has announced plans to eliminate 7% of its staff to reduce costs. – Bloomberg
