Zoom has decided to reduce its workforce by less than 2%, joining a growing list of tech companies that have initiated job cuts this year.
The layoffs at video-conferencing giant, which saw a surge in popularity during the Covid-19 pandemic, come amid a push for greater efficiency, demanded by investors.
Nearly 150 employees will be impacted by the decision.
In a statement to CNBC, a representative for Zoom said: “We regularly evaluate our teams to ensure alignment with our strategy. As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future.”
The layoffs, which are not companywide, will not affect Zoom’s hiring plans for roles in artificial intelligence, sales, product, and operations in 2024.
As of 1 February 2024, the tech industry has seen more than 100 companies lay off approximately 30,000 employees since the beginning of the year, according to layoffs.fyi.
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Microsoft reduced 1,900 positions in its gaming division, Google is eliminating hundreds of roles, and Amazon has laid off staff across its Prime Video, MGM Studios, Twitch, and Audible divisions.
Zoom’s stock has faced challenges as the pandemic waned and workers returned to in-person roles.
This is the second round of layoffs for Zoom, following a 15% workforce reduction in February 2023.
Similarly, Okta, a cloud software vendor, has also announced layoffs, cutting 400 jobs, which is about 7% of its workforce.
Okta CEO Todd McKinnon, as reported by CNBC, stated, “the reality is that costs are still too high,” acknowledging the need for the company to manage its expenses.
Okta’s previous layoffs occurred in early 2023, affecting around 300 employees, with McKinnon citing overhiring as the cause for unsustainable staffing levels at the time.