Tech Companies Continue to Cut Costs, Resulting in Zoom Laying Off 150 Employees
Zoom is laying off almost 150 employees, or less than 2 percent of the company’s workforce.
Zoom said the layoffs are not company-wide and will continue to hire for AI, sales, product and operations roles in 2024. “We regularly evaluate our teams to ensure alignment with our strategy,” a Zoom spokesperson told CNBC. opinion.
“As part of this effort, we are switching roles to increase capacity and continue to recruit in critical areas for the future,” the spokesperson added.
Last February, Zoom cut about 1,300 jobs, or about 15 percent of its workforce.
In addition to Zoom, the cloud software supplier Okta announced that it will lay off about 400 employees, or about 7 percent of its workforce. Okta CEO Todd McKinnon said “the reality is the costs are still too high.” According to the news, Okta’s shares rose by around 3.6 percent in pre-trade.
McKinnon said the company needs to be “more thoughtful” about where it invests to achieve “long-term success.”
“In order to grow profitably, we need to manage the business more efficiently. Although we have taken steps in the right direction, the reality is that the costs are still too high. We need to consider our total spending so that we can continue to invest in the areas, products and routes to market that have the most opportunities,” said the CEO.
