Shulou(Shulou.com)11/24 Report--

Thank CTOnews.com netizens Wa for the clue delivery of pure water! CTOnews.com, Feb. 8 (Reuters)-videoconferencing software developer Zoom announced on Tuesday that its videoconferencing service has slowed as the epidemic weakens, laying off about 1300 people at a cost of up to $68 million (currently about 462 million yuan).

Zoom shares, which fell 63% last year due to the collapse in technology stocks, closed up 9.9% after the news, but fell slightly in after-hours trading. In announcing that he would cut nearly 15 per cent of his staff, Yuan Zheng, the company's chief executive, said he would cut his salary by 98 per cent in the next financial year and give up bonuses.

Yuan Zheng said: "We work tirelessly... but we also made mistakes. We don't spend enough time thoroughly analyzing our team or assessing whether we are moving towards the highest priority and sustainability."

Zoom will incur about $50 million to $68 million in costs from layoffs, according to a regulatory filing on Tuesday. A large portion of that will be spent in the first quarter of fiscal 2024, the company said.

Analysts expect Zoom's revenue to grow by just 6.7 per cent in fiscal 2022, following a more than fourfold increase in revenue and a nine-fold increase in profits in 2021. Profits are expected to fall by 38% in 2022.

CTOnews.com learned that Zoom increased hiring during the outbreak to meet surging demand, but now joins American companies to control costs and prepare for a potential recession.

The company also said its executive leadership team would cut its base salary by 20 per cent over the same period. Yuan Zheng pointed out that former employees will receive 16 weeks of salary, medical insurance and a bonus.

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