Zoom Video Communications (ZM), the Silicon Valley-based videoconferencing company that surged in popularity during the pandemic's work-from-home transition, announced Tuesday that it would be laying off 1,300 employees, or 15% of its workforce.

CEO Eric Yuan wrote in a blog post posted to the company's website that "each organization" within the company would experience cuts. He added that he would be reducing his 2023 salary by 98% and foregoing his corporate bonus.

"As the CEO and founder of Zoom, I am accountable for these mistakes and the actions we take today – and I want to show accountability not just in words but in my own actions," he wrote in the post.

Much of the Zoom executive board will also forego their bonuses, along with taking a 20% base salary cut.

"We worked tirelessly and made Zoom better for our customers and users," wrote Yuan.

"But we also made mistakes. We didn't take as much time as we should have to thoroughly analyze our teams or assess if we were growing sustainably, toward the highest priorities.

"As the world transitions to life post-pandemic, we are seeing that people and businesses continue to rely on Zoom. But the uncertainty of the global economy, and its effect on our customers, means we need to take a hard – yet important – look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom's long-term vision."

Zoom, more than most tech companies, came to define the early days of the pandemic, as many turned to its platform to video chat with friends and colleagues during lockdowns. The company scaled up rapidly as people shifted to virtual interaction, and Zoom grew three times in size within 24 months.

Zoom is far from the only pandemic-era company to experience a sharp comedown after an initial boom. Peloton, for example, has gone through several rounds of layoffs.

Many big tech companies have also resorted to significant layoffs in recent weeks, including Microsoft, Meta, Dell, Salesforce, and PayPal.

Zoom is also facing increased competition from apps like Google Meet and Microsoft Teams, which have significantly improved after observing the hold Zoom held over the virtual conferencing market.

The laid-off U.S. Zoom employees will reportedly receive a severance package that includes up to 16 weeks' salary and healthcare coverage. Outside the U.S., severance will be "similar and will take into account local laws," according to Yuan.

As of Tuesday at 3:16 p.m. ET, shares of Zoom were trading at $83.27, up $6.20, or 8.04%.

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