Zoom fired its president Greg Tomb before completing a year
Popular video conferencing platform Zoom fired about 15% of its workforce a month ago. The company has now axed its president Greg Tomb. According to a regulatory filing, his role was terminated without any cause. The filing was signed off by Aparna Bawa, Zoom's chief operating officer. As part of its cost-cutting measures, the company had reduced the base pay of its executives.
Why does this story matter?
Zoom joined the growing list of tech companies to cut jobs earlier this year. The company, like many of its peers, scaled up rapidly during the pandemic. However, the post-pandemic fall in demand for video conferencing services forced it to fire employees. Despite the slowdown, the company's fourth-quarter EPS and revenue beat analysts' expectations.
Tomb's axing came as a surprise to many
Tomb's termination came as a surprise to many. Especially considering the fact that he is yet to complete a year at the company. It is unclear why he was fired. Neither Zoom nor Tomb has revealed anything about the cause of his termination. A spokesperson told Business Insider the company is not looking for a replacement for Tomb.
He will receive severance payments
"On February 28, 2023, Zoom Video Communications, Inc. (the "Company") terminated the employment of Greg Tomb as the Company's President, effective March 3, 2023," Zoom said in the Securities and Exchange Commission (SEC) filing. He will "receive severance payments" in accordance with his employment arrangements, which are payable upon a "termination without cause," the company confirmed.
Tomb previously worked at Google
Tomb joined Zoom as president in June 2022. Prior to this, he was the vice president of sales, Google WorkSpace, SMB, data and analytics, Geo Enterprises, and Security Sales at Google. With over 20 years of experience, Tomb spent most of his professional career at German software giant SAP. At Zoom, he directly reported to CEO and founder Eric Yuan.
He oversaw company's sales operation and revenue efforts
Tomb was responsible for the company's go-to-market plan, sales operation, revenue efforts, and the office of the global chief information officer. According to Zoom's SEC filing from June, his annual base salary when he joined was $400,000, with an annual bonus target of 8%. His contract also included a $45 million stock option, which would vest over a period of four years.
