As the world abruptly shut down during the pandemic, video-calling platform Zoom surged towards popularity to facilitate remote work. But as the world emerged from the virtual into the physical world, demand started settling down, and Zoom joined the layoff wave. Weeks after the platform announced that 1,300 people will be fired, its President has been ousted as suddenly as many other employees.
Sacked without completing a year
Greg Tomb has been terminated from his role as Zoom's President, without any particular reason, less than a year after he was promoted. Tomb had previously held leadership positions at firms such as SAP, and reported directly to CEO Eric Yuan at Zoom. Although Yuan took responsibility for overhiring and other mistakes that led to layoffs, Tomb is the top brass member who has been sacked.
Taking the fall?
Although Yuan took a 98 per cent pay cut, the surge in Zoom stocks after the layoffs for cutting costs, helped him benefit from his share in the firm. But the move to fire Tomb also triggered a 2 per cent drop in Zoom's stock prices, as the tech sector remains volatile.
Previously, CEOs, CTOs, advertising heads and other top level management have been hit by layoffs at Twitter and Disney. Although Disney recently slashed 7,000 people from its workforce, its CEO Bob Chapek had to step down while it was contemplating layoffs earlier.
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