2/7, 6:35 PM (Source: TeleTrader)
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Zoom announces 1,300 layoffs

Zoom Video Communications Inc, announced on Tuesday it will reduce its workforce but about 15%, or 1,300 employees.

Zoom CEO Eric Yuan called the move "tough but necessary" and added that the layoffs will impact "each organization" across the company. "Some teams will also be adjusting their structures to allow us to better invest in the opportunities ahead," Yuan noted. He stressed that all departing employees will receive up to 16 weeks' salary and healthcare coverage, as well as payment of their annual bonus for fiscal 2023 based on company performance.

With today's announcement, Zoom is joining many other tech companies that have decided to lay off significant portions of their staff over the past few weeks, including Alphabet, Amazon and Microsoft.

Zoom shares soared 8.21% to $83.40 at 12:47 pm ET following the job cuts news.

Baha Breaking News (BBN) / NP