Zoom shares closed up nearly 10% after the company announced on Tuesday that it plans to lay off 1,300 people, or roughly 15% of its workforce.
Why it matters: It's the latest tech company to readjust their organization in response to waning levels of pandemic-era demand.
What they're saying: "We didn’t take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities," CEO Eric Yuan wrote in a post.
- He added that the layoffs impact every part of the company and that he also plans to cut his own salary by 98% for the coming fiscal year and forgo his fiscal year 2023 corporate bonus.
What to watch: The cuts come on the heels of the company guiding for weaker-than-expected revenue for its full fiscal year.
- Zoom is expected to report fourth quarter and fiscal year 2023 results on Feb. 27.
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