Zoom to lay off about 15% of workforce, CEO to take 98% pay cut

Zoom Video Communications Inc said on Tuesday it would lay off about 1,300 employees, or 15% of its workforce, and Chief Executive Eric Yuan would cut his own salary by 98% as part of a broader restructuring to cope with waning demand.<br><br>Theannounced after the COVID-19 pandemic had boosted Zoom's fortunes, as companies globally shifted to remote work.<br><br>Yuan said he would also forego his annual bonus, and members of the executive leadership team would take a 20% reduction in their base salary, along with a cut in their bonus.<br><br>"Sadly, we have come to the realization that we need to reduce our headcount as we adapt to the post-vaccination new normal and its effect on the business landscape about which we all are aware," Yuan said.<br><br>Zoom's share price has fallen over 80% from its all-time high of $568.34 in October 2020, and was down 4.5% in early trading on Tuesday.<br><br>The company has faced increased competition from rivals such as Microsoft Corp's Teams and Cisco System Inc's Webex as people began to return to offices after the easing of pandemic restrictions.<br><br>Zoom plans to incur about $68 million to $72 million in charges related to the restructuring, it said.<br><br>"Admittedly, we did not adapt quickly enough to the significant shift away from the tripling of growth during the pandemic," Yuan said.<br><br>The company said it would also appoint Greg Tomb, president of Zoom, as operating officer effective immediately.<br><br>The news comes as layoffs sweep the technology industry, with giants such as Google, Amazon, Microsoft Corp and IBM Corp shedding thousands of jobs.<br><br>Zoom said it expects to incur between $68 million to $72 million in charges related to the restructuring.