Zoom laying off 1,300 employees after pandemic hiring boom
Zoom announced Tuesday that it will lay off around 1,300 employees, representing 15% of its global workforce. The news was shared by CEO Eric Yuan in a blog post on the company’s website.
Yuan suggested that the COVID-19 pandemic had significant impact on the video conferencing giant’s trajectory and that Zoom needed to “staff up rapidly” to support the quick increase in number of users.
“Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation,” said Yuan.
Additional details provided by Yuan include:
- Zoom employees working outside the U.S. will be notified of their layoff and severance packages, suggesting that cuts may occur in Canada.
- Fired “Zoomies” working in the U.S. will get up to 16 weeks’ pay, benefits, earned 2023 performance-based bonus, stock option vesting for 6 months, and outplacements services including coaching and workshops.
- Yuan will cut his 2023 salary by 98% and forego his corporate bonus for the year, and Zoom executives will reduce their pay by 20% and also waive their right to their bonus for 2023.
Termination rights for Zoom employees
In Canada, non-unionized employees of all types at Zoom are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.
This includes individuals working full-time, part-time, or hourly in Ontario, Alberta and B.C.
Severance can be as much as 24 months’ pay, depending on a number of factors.
LEARN MORE
• Severance packages in mass layoffs
• Rights to severance for provincially regulated employees
• Severance pay in a recession
WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.
Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.
We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.
If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.
About the Author
Lior Samfiru
Lior Samfiru is a Founding Partner at Samfiru Tumarkin LLP and the Practice Leader of the firm’s Labour & Employment Law Group. Known for his advocacy and success representing both employees and employers, Lior exclusively serves clients in Ontario, where his extensive experience has made him one of Canada’s most sought-after employment lawyers.
More about Lior SamfiruRelated Posts
Client Win: 17 months’ severance for wrongfully dismissed Ontario salesperson
We successfully argued that our client, a long-service staffer, didn't meet the conditions necessary to be terminated for cause.
ONxpress reportedly cuts staff in major restructuring effort
ONxpress has reportedly let go a large number of employees as part of a major restructuring. Here’s what’s they need to know.
Victoria Day 2025 in Ontario: Stat Holiday Rights for Employees
Victoria Day in Ontario is a paid stat holiday in 2025. Learn about time off, extra pay, and what to do if…