Zoom plans on laying off 1,300 employees, or roughly 15 percent of its global workforce.

How did the popular video-conferencing company get to this point? “Our trajectory was forever changed during the pandemic when the world faced one of its toughest challenges, and I am proud of the way we mobilized as a company to keep people connected,” Zoom CEO Eric S. Yuan wrote in a corporate blog posting. “To make this possible, we needed to staff up rapidly to support the quick rise of users on our platform and their evolving needs. Within 24 months, Zoom grew 3x in size to manage this demand while enabling continued innovation.”

Like many other tech giants that expanded during the pandemic, Zoom now faces a changed economic environment. “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 added.

Yuan also pledged to reduce his own salary for the coming fiscal year by 98 percent, and will forgo his 2023 bonus. Zoom’s executive team will take 20 percent salary reductions while also losing their bonuses. Meanwhile, employees impacted by the layoffs will receive up to 16 weeks’ salary and healthcare coverage.

Tech giants such as Google, Amazon, and Microsoft have all announced layoffs over the past few months. In many cases, these companies made immense profits during the pandemic, which they spent on hiring sprees. But with generalized fears of an economic recession, many consumers and businesses have cut back on everything from cloud services to hardware, forcing these tech giants to slash their budgets and headcount.

However, it’s important to keep in mind that, despite the scary headlines, the tech unemployment rate fell to 1.5 percent in January, according to the latest CompTIA analysis of data from the U.S. Bureau of Labor Statistics (BLS). “Undoubtedly some companies over-hired and are now scaling back. The low tech unemployment rate and steady hiring activity by employers confirms the long-term demand for tech talent across many sectors of the economy,” Tim Herbert, chief research officer for CompTIA, wrote in a statement accompanying the data.

In other words, despite the layoffs by some of the biggest names in tech, organizations throughout the economy still need tech talent—and they’re willing to pay to get it.