Zoom CEO told employees culture is the company’s No. 1 problem and gave his blessing to anyone who wants to leave

• In an all-hands, Zoom’s CEO was asked if his return-to-office mandate would create resentment.
• He told employees that company culture was Zoom’s top issue.
• He asked employees to “care about our business” as Zoom looks for new ways to jumpstart growth.

According to a recording viewed by Insider, Zoom CEO Eric Yuan told employees during a recent all-hands meeting that culture is the company’s No. 1 problem and wished everyone the best if they wanted to leave.

Zoom, a company whose success is dependent on people communicating remotely, shocked the tech world by joining the wave of companies forcing employees to return to work. As previously reported by Insider, as of August 14, the company began requiring those who live within 50 miles of a Zoom office to commute in at least two days per week.

Yuan explained the decision during the all-hands meeting, saying that even Zoom’s own remote-work product doesn’t allow employees to build as much trust or be as innovative as they are in an office.

When asked if Zoom’s mandate to return to the office would create a “culture of resentment versus rebuilding the culture,” Yuan asked employees to consider the business case as well as the perspectives of managers and executives.

“The No. 1 problem we are facing is company culture,” Yuan said, noting that many large and successful corporations face similar issues. “The issue is, what can we do from a business standpoint?” We all care about our employees, customers, and partners, while also building trust from our employees who care about our business.”

Yuan then gave his approval to anyone who wanted to leave the company. “Any ‘Zoomies’ who feel like this isn’t the company for them, that’s fine,” he said. “We wish you the best of luck.” Again, we want to ensure that we support one another and keep the company in mind.”

Some interpreted Yuan’s remarks as an invitation to anyone who did not wish to return to office. According to one user on Blind, an anonymous discussion app for tech-industry employees, who identified themselves as a Zoom employee: “RTO or GTFO.”

“This is not something simple and straightforward,” Yuan explained. “This is our company, and this is our number one problem. Consider it from the perspectives of others, as well as from a business standpoint, and consider what we can do differently. Otherwise, I can assure you that even if we have a fantastic opportunity ahead of us, we will be unable to deliver unless we address the culture issue.”

Zoom is a major enabler and beneficiary of remote work. Early in the pandemic, the company’s videoconferencing service became so common that its name became a verb describing the act of starting any video chat to connect with coworkers online. Zoom shares more than doubled in 2020 as sales increased due to COVID-19 restrictions that kept millions of workers at home.

However, many companies have since announced mandatory return-to-work policies. Despite the fact that Zoom just reported a profitable, expectations-beating second quarter, revenue growth has slowed and the stock has fallen since its pandemic highs.

According to Morgan Stanley’s Meta Marshall in a research note, the share price suffers from “underwhelming” revenue growth, particularly as the company must convince enterprise companies to continue spending on its products in the current tight economy.

That is the aspect of the culture that Yuan appears to want employees to be more aware of.

“This is our company, not my company, not our board of directors’ company, not our senior executive’s company,” he said. “We’ve all got to care about each other and the company.”