Zoom jumps as CEO says company will lay off 1,300 workers
Sundry Photography/iStock Editorial via Getty Images

Zoom Video Communications (NASDAQ:ZM) rose more than 6% on Tuesday as the company's CEO, Eric Yuan, disclosed the communications software company will let go 1,300 workers, or around 15% of its global workforce.
In a blog post, Yuan said the uncertainty of the global economy and its effect on the company's customers resulted in the layoffs.
"We did not take a single departure lightly â our leadership carefully examined and made decisions based on critical priorities for long-term growth, and also looked for functions that have become overly complex or duplicative," Yuan wrote in the post.
Yuan also said he would reduce his salary for the coming fiscal year by 98% and forego his fiscal 2023 corporate bonus. He also added that his executive leadership team would see a 20% reduction in their base salaries for the coming fiscal year and forfeit their bonuses for fiscal 2023.
Employees in the U.S. who are affected by the layoffs will receive up to 16 weeks salary and healthcare coverage, along with a payment of their earned fiscal 2023 bonus. 
They will also receive RSU and stock option vesting for six months for U.S. employees and through August 9, 2023 for non U.S. employees
Impacted employees will also be eligible for additional outplacement services.
Last month, Barclays noted that Zoom (ZM) was getting ready to increase the price of one of its popular subscription plans by 7%.