Zoom Sacks President Greg Tomb ‘Without Cause’ After Company Laid Off 1,300 Employees

Zoom Sacks President Greg Tomb 'Without Cause' After Company Laid Off 1,300 Employees

Zoom Video Communications Inc has sacked its President Greg Tomb, a former Google executive who joined the firm in June last year. In a regulatory filing, the company said Tomb will receive severance benefits in line with the arrangements payable upon a “termination without cause,”  reported news agency Bloomberg.

The California-based company said it isn’t looking to find a replacement now. The development comes after Zoom’s Chief Executive Officer Eric Yuan announced last month in a blog that the company is laying off about 1,300 employees, or approximately 15 per cent of its staff. He added that the changes would impact every part of the organization.

ALSO READ: Airbnb Laysoff 30 Per Cent Recruiting Staff, Despite Reporting A Profitable Year Report

“We have made the tough but necessary decision to reduce our team by approximately 15 per cent and say goodbye to around 1,300 hardworking, talented colleagues,” Eric Yuan wrote.

Tomb, assumed a critical position at Zoom during his short tenure and appeared on earnings calls while tracking the company’s sales operation. In his role, he was reporting directly to the CEO, who started Zoom in 2011.

Tomb’s salary included a $45 million stock grant that would vest over four years apart from the $400,000 base salary with an 8 per cent bonus target, according to a June filing.

In an interview earlier during World Economic Forum in Davos, Switzerland, Tomb spoke optimistically about Zoom’s growth potential and acknowledged that the company faced more competition. 

The company had grown build during a pandemic-fuelled boom but announced job cuts to deal with softening demand.

Addressing the affected employees as “hard-working, talented colleagues”, Yuan said those based in the US will get an email and all non-US staff will be informed following local requirements.

Yuan also noted that he and other executives will take a significant pay cut. In the message to employees, he admitted to making “mistakes” in how quickly the company grew during the pandemic.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *