Zoom will cut 15% of its workforce (1,300 jobs) and reduce executive pay due to a slowdown in demand for its video conferencing services caused by the pandemic.
Despite this, the company's shares rose 9% after a 63% decline last year. CEO Eric Yuan will take a 98% salary cut and forgo his 2023 bonus.
Yuan admitted that the company had made mistakes and failed to thoroughly analyze its teams or assess growth sustainability.
Analysts predict a 6.7% increase in revenue and a 38% drop in profit for 2022 after a 4-fold revenue jump and 9-fold profit increase in 2021.