Zoom Video Communications announced that it will cut about 2% of its workforce and focus on artificial intelligence, according to reports. The American communications tech firm's decision will impact around 150 employees, and it said it aims to make hires to fill new positions in critical areas such as AI.
Zoom announced in 2023 that it would cut approximately 1,300 jobs or around 15% of its workforce, the company's shares were up 0.23% in after-hours trading on the Nasdaq after closing Thursday with a gain of 0.37%.
Zoom's use jumped significantly during the coronavirus pandemic due to remote work, social relations and distance education, while its mobile app became the fifth most downloaded in 2020.
Dozens of companies in the U.S. technology sector have been cutting jobs since the final quarter of last year as they struggle with lower income and falling advertisement revenue.
PayPal, Uber, reddit, Disney, 3M, Amazon, Yahoo, Affirm, Zoom, Dell, IBM, Microsoft, Salesforce and Google's parent company, Alphabet, have laid off workers by the thousands since the last quarter of 2023.
