Zoom Terminates Employment of Its President Less Than A Year After Joining The Company

Communications technology company Zoom has fired its president Greg Tomb, less than a year after he joined the company.

The layoff of Tomb is reported to have sent the shares of the company down as much as 2% in premarket trading before they rallied. According to the company via a regulatory filing, it disclosed that Tomb will receive severance benefits in accordance with arrangements that are payable upon termination without a cause.

Tomb’s employment with Zoom included a $45 million stock grant that would vest over four years, in addition to a $400,000 base salary with an 8% bonus target. A spokesperson at Zoom disclosed that the company would not be looking for a replacement at the moment.

While at Zoom, Tomb had appeared on the company’s earnings call and oversaw its sales operation. He was also accounting for Zoom’s go-to-market plan, revenue initiatives, and office of the global CIO.

Investors King understands that when Tomb was appointed as the president of Zoom, he stated that he was thrilled to join forces with Eric Yuan, the company’s CEO, and the Zoom team to help drive growth.

He further revealed his desire to help businesses around the world address their communications and collaboration needs. Unfortunately, he couldn’t achieve all of this after the company abruptly terminated his appointment.

Before joining Zoom, Greg was the Vice President of Sales at Google Workspace, SMB, Data & Analytics, Geo Enterprises, and Security Sales at Google Cloud.

Meanwhile, Zoom last month, laid off 1,300 employees, about 15% of its workforce which affected all departments across the company. The company’s CEO Eric Yuan also stated that he will forego 98% of his salary for the coming fiscal year and a full corporate bonus.

Also, members of his executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting their FY23 corporate bonuses.

This move according to him was necessitated, citing the uncertain global economy, as the company looks to reset itself so it can weather the economic environment, deliver for its customers and achieve its long-term vision.