Zoom lays off 150 employees, Okta slashes 400 jobs

Zoom, the popular video communication platform, has announced a reduction in its workforce, with nearly 150 employees set to be laid off. This represents less than 2 per cent of the company's total workforce.

The company clarified that these layoffs are not across the entire organisation. Instead, Zoom intends to focus its hiring efforts on specific areas such as artificial intelligence, sales, product development, and operational roles throughout the year 2024.

A spokesperson for Zoom informed CNBC that the decision to streamline their teams is part of their ongoing strategy evaluation process. They stated, “We regularly evaluate our teams to ensure alignment with our strategy,” further adding, “As part of this effort, we are rescoping roles to add capabilities and continue to hire in critical areas for the future.”

This move follows a similar downsizing initiative by Zoom in February last year when approximately 1,300 jobs, constituting about 15 per cent of its workforce, were cut.

Meanwhile, in a parallel development, cloud software vendor Okta has also revealed plans to reduce its workforce. Around 400 employees, or approximately 7 per cent of Okta's total workforce, are expected to be affected.

Okta's CEO, Todd McKinnon, addressed the decision, citing the necessity to control costs. He remarked, “The reality is that costs are still too high.” In response to this news, reports indicate that Okta's shares experienced a 3.6 per cent increase in premarket trading.

McKinnon emphasised the importance of strategic investment for long-term success, stating, “In order to grow profitably, we need to run the business with greater efficiency. While we've taken steps in the right direction, the reality is that costs are still too high. We need to be mindful of our overall spend so we can continue to invest in the areas, products, and routes to market with the most opportunity.”