Company President Greg Tomb was terminated by Zoom, eight months after being hired. The company announced during a filing with the Securities and Exchange Commission that the "termination without a cause" is effective this Friday.
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The logo of Zoom Video Communications is seen on the opening day of the Integrated Systems Europe (ISE) audiovisual and systems integration exhibition in Barcelona on January 31, 2023.
Terminating Company President
With company layoffs and slow sales growth, Zoom Video Communication announced another bad news for the company. According to MarketWatch's report, the company fired President Greg Tomb without cause and will be effective this Friday.
His termination without a cause was announced during a regulatory filing with the Securities and Exchange Commission. A spokesperson from Zoom stated that as of the moment, the company is not looking for a replacement for Tomb.
Analyst Sterling Auty stated this decision comes after Zoom's latest outlook implied a much bigger deceleration than the Street had modeled for the company's growth. "And now we have a change being made in the executive that was brought in for sales leadership," Auty added.
Hiring Greg Tomb
Tomb was hired as the company president last June 2022 during his short tenure, as he appear on earnings calls and oversaw the company's sales operation, market strategy, revenue efforts, and the office of the Global CIO. During his stay with the company, he reported directly to Chief Executive Officer Eric Yuan.
Bloomberg reported that included in his contract was a $45 million stock grant that would vest over four years and a $400,000 base salary with an 8% bonus target. He was hired in an effort to shape Zoom's next chapter as the company continues transforming into a platform that enables communication, hybrid work, and business workflows.
Before joining Zoom, he was a vice president of sales for Google Workspace, SMB, Data & Analytics, Geo Enterprises, and Security Sales at Google Cloud. He also became the President of Sales and GTM for SAP's cloud offerings, including Intelligent Spend, SuccessFactors, Customer Experience, Digital Supply Chain, Concur, and Business Technology Platform.
Prior to these experiences, he also served as the Chief Executive Officer of Vivido Labs Inc. and held managerial positions at Accenture Consulting and Comergent Technologies Inc., based on a released statement by Zoom last June.
He stated when he was hired, "I strongly believe that Zoom has an impressive foundation with its multi-product platform, and I look forward to the tremendous opportunities ahead to help businesses around the world address their communications and collaboration needs."
Also Read: Zoom Reports Its Slowest Quarterly Sales Growth, Revenue is Weaker Than Expected Guidance
CEO Yuan announced that the company will lay off 1,300 employees which slash roughly 15% of its workforce. The job cuts have expanded to all organizations in the company but employees were promised to have 16 weeks; worth of their salary before termination. Aside from this, workers will also be offered healthcare coverage.
Related Article: Zoom Lays Off 1,300 Employees - 15% of its Total Workforce?
