An American communications technology company, Zoom Video Communications Inc, made a statement on December 16. They announced that the company would expand its presence in Singapore by opening a research development center. They added that they would hire hundreds of engineering workers for the new operations.
Zoom became especially popular during the pandemic period. It provides videotelephony and online chat services. Therefore, people were able to work, study, or communicate with friends online. After increasing 635% in 2020, Zoom became the most well-known video conferencing app used during the coronavirus pandemic. In October 2020, Zoom’s market capitalization passed $140 billion. However, after announcing the coronavirus vaccine’s efficiency in November, Zoom’s stock price declined over 15%.
Zoom announced in a statement that it is also doubling its data center capacity in the country. In August, in San Jose, the giant company originated the Singapore data center, the first in Southeast Asia.
The video-conferencing services provider has witnessed a rise in its video conferencing service users this year. Millions of workers and students use its video platform to work and study from home during the COVID-19 lockdowns.
During floating the Zoom’s expansion plans, Velchamy Sankarlingam, president of Zoom’s product and engineering, announced that they plan to hire employees immediately. The San Francisco-based company would choose the location for its new center as pandemic-related remote-work mode subsides. They are adding to their current R&D centers in the United States, India, and China.
Singapore has been ramping up its efforts to attract firms related to technology
In recent years, Singapore has been ramping up its efforts to attract firms related to technology. Such are Facebook, Alphabet’s Google, and Chinese tech giants Tencent and Alibaba, a sector it believes will power the city-state’s economic extension.
In November, the low-tax global business hub published a new work visa for technology firms’ international executives. It hardens broader immigration curbs to try and assuage fears over competition for jobs due to increasing unemployment.
The giant company has previously announced its hiring plans for Singapore would include engineers and a sales team. Zoom stated it has more than 3,800 employees globally but did not provide a headcount for its Singapore operations.
As it is known, Zoom’s share price has increased by nearly 500% in 2020. Besides, Zoom informed last month that margins would stay under pressure next year as its high number of free users makes it difficult to offset a spike in costs to keep growing.