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Zoom trims 150 jobs in efficiency push

By Nithya Bose in Business News, posted February 2, 2024

Zoom is cutting around 150 jobs, or nearly two percent of its employees, in response to investor demands for greater efficiency.

The company plans to realign its teams and enhance capabilities in key areas through the restructuring.

However, it will continue recruiting in artificial intelligence, sales, product development, and operations throughout 2024.

These job reductions are not uniform across the company but are targeted in specific areas, indicating Zoom's intent to refine its focus and adapt to future demands.

Bloomberg initially reported the news of Zoom's layoffs and comes amid a wave of job losses within the tech sector.

According to layoffs.fyi, over 100 tech companies have laid off around 30,000 workers since the beginning of the year.

January has been a particularly harsh month for tech employment since last March.

Major players such as Microsoft, Google, and Amazon have announced cuts, affecting various departments from gaming divisions to entertainment and cloud services.

On the same day as Zoom's announcement, cloud software company Okta revealed it would cut 400 positions, about 7 percent of its workforce.

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Zoom's surge in usage during the Covid-19 pandemic as a key tool for remote communication has waned with the return of in-person work.

It led to a steep decline in its stock value.

Since peaking in October 2020, Zoom shares have fallen approximately 90 percent, with a 10 percent decrease observed this year alone.

The current layoffs follow a larger reduction in February of the previous year when Zoom eliminated about 1,300 jobs or 15 percent of its workforce.

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