Employment Law

Zoom ‘rescoping roles’, laying off 150 employees

A videoconference featuring a dozen participants is shown on a laptop screen. Zoom employees are entitled to full severance pay when they lose their job.

Zoom, a prominent figure in the video-conferencing sector, has recently confirmed the reduction of its workforce by approximately 150 jobs –a figure that represents less than two per cent of its total employees.

This move aligns with a growing trend in the tech industry where companies are refocusing their efforts towards efficiency and strategic realignment.

What’s happening at Zoom?

In a statement to CNBC, a Zoom spokesperson stated that the company “regularly evaluates [its] teams to ensure alignment with [the business’] strategy.”

“As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future.”

Zoom claims that the layoffs are not a blanket reduction across the company but rather targeted to specific areas. They plan to continue hiring in 2024 for positions in its artificial intelligence, sales, product and general operations divisions.

The videoconferencing platform cut 1,300 employees approximately one year ago.

In an email explaining the February 2023 layoffs, CEO Eric Yuan said that the terminations were necessary following a hiring spree during the COVID-19 pandemic to deal with increased demand for the platform.

Zoom layoffs in Canada

It remains unclear if Canadian employees at Zoom have been let go.

Termination agreements for Zoom employees

In Canada, non-unionized employees at Zoom are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

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, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

• Severance for provincially regulated employees
Rights to severance for tech sector staff
• Rights to severance during mass layoffs

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Major tech layoffs continue

Well over 100 technology companies have collectively laid off around 30,000 employees, with January marking the most significant month for job cuts since March of the previous year.

Big names, including PayPal, Salesforce, Microsoft, eBay, Brex, Wayfair, Amazon, YouTube, Google, Instagram, Discord, and Twitch, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Dell layoffs hit multiple roles, including sales, marketing: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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