Zoom Video Communications Inc has said it would cut about 1,300 jobs and take a related charge of up to $68m as demand for its video conferencing services slows with the waning of the pandemic.
The company’s shares, which fell 63 percent last year amid a rout in technology shares, closed up 9.9 percent on the news but were down marginally in extended trading.
While announcing the layoffs on Tuesday, which will hit nearly 15 percent of its workforce, Chief Executive Officer Eric Yuan said he would take a pay cut of 98 percent for the coming fiscal year and forego his bonus.
Zoom will incur about $50m to $68m in charges related to the layoffs, according to a regulatory filing on Tuesday. The company said a substantial part of it will be spent in the first quarter of fiscal 2024.
The company, which became a household name during lockdowns due to the popularity of its video-conferencing tools, has seen its revenue growth slow.
Source: AlJazeera