‘Zoomies’ After

As millions of people around the world continue to rely on tech giants like Zoom for their education, meetings, happy hours, and so much more, the company recently announced it was cutting 1,300 of its full-time employees, known as “Zoomies.”

The shock announcement came shortly after the company previously revealed its quadrupled yearly revenue for 2020, taking its total revenue for the year to $2.65 billion, almost 10 times more than the previous year.

The layoffs, which amount to around 8% of the company’s workforce, are Zoom’s first major step towards streamlining its operations and putting itself in a better position to ride out the uncertainty of the coronavirus pandemic. Zoom CEO Eric Yuan’s stated that the company was “back to a culture of efficiency, with laser focus on execution and disciplined spending,” in a letter to employees announcing the layoffs.

In a press release, the company stated that the layoffs were part of a pre-announced restructuring effort designed to promote efficiency and agility and reposition Zoom for sustainable long-term growth. The announcement also said that Zoomers affected by the job cuts will be given a minimum of four weeks’ severance pay, outplacement services, career transition support, and equity acceleration, among other benefits.

For those remaining with the company, the layoffs could mean expansion and promotion opportunities, as Yuan also announced that the company plans to double its engineering team over the next year. He also said that the company will continue to make investments in areas such as global go-to-market capabilities, customer support, security, and compliance.

The layoffs come as a surprise after Zoom’s meteoric rise to success during the pandemic, but they also highlight Zoom’s desire to remain committed to the long-term success of the company. With an eye to efficiency and sustainability, Zoom is setting itself up for continued success even if the pandemic subsides.