Zoom is cutting hundreds more jobs as conditions fail to improve

Even Zoom is not immune from troubling market issues - with Okta also announcing cuts

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Zoomhas announced another round of layoffs reportedly pushed by its investors’ desire for greater efficiency in response to an evolving market and a continually tough economy.

Thevideo conferencingcompany announced it would be making 150 workers redundant, accounting for around 2% of its current headcount, according toCNBC.

This isn’t the company’s first layoffs, as the company revealed a significant 15% cut affecting 1,300 workers back in February 2023.

Zoom revealed more job losses

However, the fact that a company that has seen as much success as Zoom is having to rethink its workforce is a troubling sign. With workers globally sent home during the pandemic, the need forhybrid working techlike video conferencing software skyrocketed, with many businesses and individuals turning to Zoom.

Despite increasing ninefold to an October 2023 all-time high of around $559, Zoom shares have once again plummeted to pre-pandemic levels.

The reduction follows an alarming trend in the tech industry, with major players likeMicrosoft,Google, andAmazonall announcing job cuts in recent weeks.

At the same time,identity managementprovider Okta confirmed a larger layoff of around 400 staff, or 7% of its workforce. Speaking about the decision, CEO Todd McKinnon declared that the company’s costs had become too high. Shares in Okta have had a turbulent year, and it’s been hard to draw a trend from the heavy fluctuations.

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TechRadar Proasked Zoom and Okta to share more context about their decisions.

In an email later seen byTechRadar Proaddressed to company employees, Okta CEO Todd McKinnon confirmed the decision to lay off “approximately 400 people,” citing a need to “grow profitability” and “run the business with greater efficiency.”

McKinnon added that the measure was a proactive one aimed at setting up the company for long-term success, confirming a number of financial and further support packages for affected workers.

A spokesperson for Zoom told us: “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,” suggesting that the announcement could be part of a restructuring move rather than a sudden reaction to the economy.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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