Do you know The Zoom Boom Ended in 2023? The video conferencing system let off 1,300 employees, or 15%, of its workforce yesterday. There followed a two-year period in which Zoom’s employee base tripled. Eric Yuan, CEO of Zoom, stated in a statement announcing the layoffs, “We didn’t take as much time as we should have to thoroughly review our teams or determine if we were growing sustainably, towards the top priorities.” According to a US Securities and Exchange Commission filing, Yuan said that he was “accountable for these mistakes” and promised to cut his pay by 98 percent and forfeit a 2023 bonus, bringing his remuneration to around $10,000.
Zoom is not by itself. When the Covid-19 pandemic slowed down the world and encouraged people to spend more time in front of screens, big IT businesses saw a boom. 2020 saw almost 400,000 new hires at Amazon and 13,000 at Meta, then Facebook. From a little-known video conferencing platform, Zoom became well-known. Zoom happy hours, nuptials, and funerals all took place. According to the business, 300 million people per day would be using Zoom calls by late April 2020. For the fiscal year ending in January 2021, it claimed $2.6 billion in sales, a 326 percent increase from the previous year, making it the top downloaded app on Apple devices in 2020.
Zoom’s power is dwindling almost three years later. Competitors offer calling along with email and other productivity tools, namely Microsoft and Slack. Since the majority of those who would have been eager to purchase Zoom packages may already have done so, Zoom is experiencing market saturation and succumbing to the Peloton dilemma. According to Will McKeon-White, an infrastructure and operations researcher at market research firm Forrester, “It’s suddenly become a much, much harder market than what [Zoom] previously encountered.”
However, Zoom might be overtaken by competing bundled services like Google Meet, Microsoft Teams, and Slack as businesses attempt to save costs in the face of market uncertainty. But, Zoom is still expanding right now. In its most recent financial report, growth is estimated to be approximately 5% year over year, a substantial decrease from the revenue increase of 55% year over year projected for 2021. Less people are zooming in for leisure, so more people are zooming in for business. In addition, Microsoft Teams, Zoom’s major competition, has discreetly increased its user base and will surpass 270 million by the beginning of 2022.
The Zoom Boom Has Ended in 2023
Zoom appears to understand the need for it to be more than just a video call service. It revealed plans to launch an AI-driven chatbot to address customer complaints and incorporate email and calendar functionality into the platform in late 2022. A new feature dubbed Zoom Spots, a video coworking experience that sounds a lot like a never-ending Zoom session will come later this year. It has already introduced cartoon avatars and meeting themes.
Zoom was successful because it was simple to use. If consumers kept their calls under 40 minutes, it was also free. At one moment, 100 persons may join. But, there are other video chatting providers that provide longer-lasting free calls, including Google Meet and Skype. And it wasn’t entirely a good thing to become linked with video calling. Some have described experiencing “Zoom fatigue,” which they attribute to the peculiar psychological effects of interacting via video and spending hours each day looking in the mirror.
Several people started “Zoom bombing” conferences, taking over lectures, and flooding them with vulgar and insulting material. For some people, video meetings have caused new concerns. Also, Zoom came under fire for failing to safeguard its consumers’ privacy. Zoom’s market value peaked in October 2020 at $139 billion. Its market cap was $23.4 billion in February 2023.
As the pandemic enters its fourth year, the layoffs at Zoom and other places show a change in how people are living and working. According to Layoffs, about 100,000 tech workers will lose their jobs in 2023. FYI, a website that keeps tabs on job losses in the sector. Added to that will be around 160,000 in 2022. The layoffs of more than 10,000 employees each have been announced by major corporations like Amazon, Meta, and Google. Microsoft laid off almost 10,000 people.
The tech sector is experiencing these cutbacks, but the overall economy is still robust. This mostly serves as a correction. We’re seeing this across a variety of different organizations,” says senior economist Rachel Sederberg of labor market analytics company Light cast.
The future of Zoom might be beginning to appear hazy. At a time when fewer people spend their days in front of computers, it competes with other video calling platforms. Nonetheless, Zoom is still one of the most user-friendly video-calling services, so it’s not necessarily time to say goodbye to it. To compete with Google and Microsoft, the corporation will need to demonstrate more in the workplace. And for that, it will require more than simply a brand known for video calling.