The company, which became a household name during the lockdown due to the popularity of its video-conferencing tool, has seen its revenue growth slow.
Analysts forecast Zoom’s revenue to grow only 6.7% in fiscal 2022 after a more than four-fold increase in revenue and a nine-fold increase in profit in 2021. Profits are projected to decline by 38% in 2022.
Rishi Jaluria, analyst at RBC Capital Markets, said, “I would say incrementally, maybe this is telling us that we shouldn’t expect a near-term re-uptake on the revenue side, but we’re seeing growth in the margins of an already profitable company.” Can see extra bounce.” Said.
Zoom kept hiring during the pandemic to meet rising demand, but has now joined US companies in cutting costs to brace for a possible recession.
US companies from Goldman Sachs Group Inc to Alphabet Inc have laid off thousands of people this year to address a slump in demand caused by high inflation and rising interest rates.
The video conferencing software maker also said its executive leadership team would reduce their base salaries by 20% over the same period.
Yuan said the departing workers would receive 16 weeks’ pay, healthcare coverage and bonuses for the year.