Zoom Goes From Exponential Growth to Stagnation

The video conferencing platform Zoom, grew exponentially during the pandemic, as did its staff team. Between July 2019 and October 2022, the number of employees on Zoom’s books grew by 275% to a total of 8,422 workers.

Zoom leveraged the economic and social conditions created by the lockdown and companies had to rely on the platform to keep their businesses going and to communicate effectively with their staff.

However, Zoom’s growth has now slowed down just like other tech companies that benefitted from the pandemic caused by covid. The world has gotten itself back up to speed and no longer relies heavily on Zoom.

READ ALSO: Zoom To Lay Off 15% Of Its Workforce, Says CEO Eric Yuan

Tech companies such as Amazon, Google, and Microsoft let around 5-6% of their staff go. Although Zoom may be feeling the pinch more than other tech companies due to the nature of its flagship, the number of employees let go by Google and Microsoft is much larger than Zoom’s 1,300 layoffs.

Although Zoom has laid off a particularly high percentage of staff, it is not the only tech company to overplay its hand during the pandemic. Companies across the board are having to downsize their operations and make strategic decisions about their company’s future.

We are now seeing more businesses deploy initiatives like voluntary separation to try and avoid making redundancies.

With the global economic situation looking like it might get worse before it gets better, it will be no surprise if we see even more businesses hamstrung by their finances and forced to reduce their headcount as a result.