Why Zoom Shares Are Exploding Higher

Zoom Video Communications Inc ZM shares are trading higher by 9.31% to $84.24 Thursday afternoon after the company announced it will reduce its team by approximately 15%.

What Happened?

Eric Yuan, CEO of Zoom said in part Tuesday that: "We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues."

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Yuan added how "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."

Yuan says he is reducing his own salary for the coming fiscal year by 98% and foregoing his FY23 corporate bonus. Additionally, members of his executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses.

According to data from Benzinga Pro, ZM has a 52-week high of $152.69 and a 52-week low of $63.55.