Zoom's COVID-19 Video Conferencing Boom Ends... 150 More Employees Laid Off

Following last year's 1,500 layoffs, restructuring continues
MS, Google, and Amazon also announce workforce reductions

Zoom, which increased its sales through video conferencing software during the COVID-19 pandemic, announced that it will carry out restructuring again this year following last year. This is interpreted as a result of difficulties in generating revenue as the COVID-19 special demand ended and most companies abolished remote work and resumed office attendance. Concerns over the worsening management of IT companies in general are growing, and well-known big tech companies such as Google and Amazon have already announced workforce reductions, causing a wave of layoffs in Silicon Valley since the beginning of the year.

(Photo by Zoom Official Blog)

On the 1st (local time), Bloomberg reported that Zoom plans to lay off about 150 employees this week, joining the trend of workforce reductions among big tech companies. Previously, Zoom had cut about 1,300 employees, approximately 15% of its workforce, in February last year. As revenue generation has not improved significantly, it is analyzed that the company is undertaking high-intensity restructuring again this year.

Zoom stated, "We regularly evaluate teams to ensure alignment with our strategy," adding, "As part of these efforts, we are reallocating roles to sustain hiring in core areas for the future."

However, a company official who requested anonymity told Bloomberg, "This reduction is not company-wide. We will continue to add people in areas such as artificial intelligence (AI), sales, and engineering this year."

Zoom grew significantly as a video conferencing platform during the pandemic but began to struggle as remote work decreased afterward. To survive, Zoom has been seeking new opportunities through various auxiliary businesses, such as developing enterprise applications similar to the messenger 'Slack.' However, it is known to be facing difficulties maintaining the high sales levels seen during the pandemic. Recently, its stock price has fallen by 90% compared to its all-time high in October 2020.

Not only Zoom but also Silicon Valley has been experiencing a wave of restructuring since the beginning of the year. In addition to Zoom, well-known big tech companies such as Microsoft (MS), Google, and Amazon have also announced workforce reductions one after another. According to Layoff, a site tracking tech industry layoffs, 29,900 people have been laid off from 112 IT companies this year alone.

The day before, cloud software company Okta announced plans to lay off 400 employees, accounting for 7% of its total workforce. Online payment service provider PayPal will also reduce 2,500 jobs this year.

MS, which completed the acquisition of game company Blizzard, announced plans to cut 1,900 jobs in the gaming division alone, and Alphabet, Google's parent company, has already laid off more than 1,000 technical and advertising staff and plans to carry out a restructuring involving about 100 employees at YouTube. Additionally, e-commerce company eBay plans to lay off 1,000 full-time employees.

This content was produced with the assistance of AI translation services.