Remote Work Irony: Zoom Struggles With The Very Issue It Was Designed To Address, CEO Calls Employees Back In Office

Zoom Video Communications Inc. ZM CEO Eric Yuan thinks that his employees cannot be as innovative or bond with their colleagues over Zoom calls after the remote working software won the jackpot in 2020 and later due to the Covid-19 pandemic.

What Happened: Yuan said in an internal memo that it's not possible to build trust or have a great conversation over Zoom calls, reported Insider.

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As a result, Yuan now wants his employees back in the office as part of a "structured hybrid approach". Employees within 50 miles of a Zoom office must work there at least two days a week.

"Quite often, you come up with great ideas, but when we are all on Zoom, it’s really hard. We cannot have a great conversation. We cannot debate each other well because everyone tends to be very friendly when you join a Zoom call," Yuan said in the memo.

Why It Matters: Zoom was one of the biggest beneficiaries of the shift to remote work in the wake of Covid-19 pandemic. It capitalized on the need for remote working solutions, allowing everyone from individuals to companies and even educational institutions to use Zoom and get work done.

However, the company's CEO seems to have had a change of heart now that other employees are back in their offices.

"In our early days, we all knew each other. Over the past several years, we’ve hired so many new ‘Zoomies’ that it’s really hard to build trust," Yuan added.

Big tech companies like Apple Inc. AAPL and Amazon.com Inc. AMZN have asked their employees to return to the office despite intermittent protests from staff. This has contributed to a decline in demand for video conferencing solutions. As a result, Zoom laid off 1,300 employees, or 15% of its workforce, in February this year.

While Yuan said he would take a 98% pay cut, other executives are staring at a 20% cut in the coming year.

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