Do we like Zoom?
Video meetings and workplace software (Zoom Workplace, Phone, Contact Center), based in San Jose, California.
Our score: 6 out of 10. A useful, mostly well-behaved product with a past privacy and security stumble that was settled. We'd back them cautiously, not with enthusiasm.
Zoom was founded by Eric Yuan, who is still CEO. It became a household name in the pandemic, when everyone suddenly had to work and see friends over video.
The boom brought scrutiny. In November 2020 the FTC settled with Zoom. It said Zoom had misled users since at least 2016 by claiming 'end-to-end, 256-bit encryption' when it offered less protection. It also cited a hidden Mac web server.
There was no fine. Zoom has to run a full security program, get independent assessments and use multi-factor authentication for 20 years, with penalties if it breaks the order. Two FTC commissioners dissented, saying it didn't do enough for privacy.
In 2023 Zoom said it would cut about 15% of staff, roughly 1,300 people. Yuan cut his own pay by 98% and skipped his bonus, and staff were offered up to 16 weeks' pay and healthcare. That's a decent way to handle bad news, but still a big layoff.