Reorganization at video calling company Zoom – Apparata

The chairman of the board of the well-known video calling company Eric Yuan has announced via a blog that a reorganization is planned for the company. According to this blog, addressed to ‘zoomies’, 15% of employees will be laid off. This equates to about 1,300 talented employees named by Yuan. Not only the reorganization should save Zoom. The chairman has also announced that he will hand in 98% of his salary in the coming year. Furthermore, the entire board will contribute 20% of the base salary this year.

What is Zoom?

Zoom, also known as Zoom Video Communications, is a teleconferencing service software company. The company was founded in America in 2011 by Eric Yuan. In September 2012 it was possible to use Zoom with a maximum of 15 video participants. It is now possible to have 100 video participants participate in the organized online meeting. For the free version, you can meet online for a maximum of 40 minutes.

See the video below for a brief explanation of how to use Zoom.

How did Zoom come to reorganize?

During the corona pandemic, Zoom has grown 3 times in size within 24 months. In order to meet the high demand, a lot of extra staff has been hired in a short period of time. This was necessary to continue supporting users on the platform. In the following months, the staff has been committed to continuing to develop Zoom. However, there is also a downside to the rapid, large growth: thorough analysis and assessment of the teams were not a priority.

What do departing employees receive from Zoom?

The employees who will be made redundant during the reorganization will be offered support. This support is only if you are a full-time employee. It concerns the following offers from Zoom:

• Receive up to 16 weeks of salary including health insurance;
• Annual bonus payment based on business performance;
• Coaching, workshop and network groups to make the step towards finding a new job small.

Zoom is not the only tech company that needs to reorganize

Tens of thousands of employees working at various technology companies will also lose their jobs. For example, Google (Alphabet), Facebook (Meta), Amazon, Microsoft and Spotify recently announced that they will also have to reorganize. It is now known that this is a major reorganization.

The announced reorganization of Spotify is striking. It was recently announced that this company has passed the 200 million user mark. Despite this achievement, losses are still incurred. Among other things, because a lot of budget is spent on attracting new listeners.