What’s going on:
On Friday, Zoom Video Communications abruptly terminated its president Greg Tomb, who had only joined in June.
He is entitled to severance benefits as it was “termination without cause.” According to a regulatory filing, Tomb was granted $45 million in stocks that would vest over four years, with an annual salary of $400,000.
Why it matters:
Earlier this week, Zoom disclosed their earnings report which included a notable 27% increase in large enterprise customers year-over-year.
In February, Zoom drastically cut their workforce by 15%, laying off over a thousand employees.
Last month Zoom CEO, Eric Yuan, also dropped his salary by 98% (a pay cut of $490,000) and waved his 2023 bonus. This came after the company laid off 1,300 workers due to “mistakes” Yuan said he made.
How it’ll impact the future:
Questions remain as to who will fill Tomb’s shoes as President of Zoom; when pressed for comment, a spokesperson from Zoom stated that the company will not appoint a successor, and declined to elaborate further.
Layoffs in the tech sector have been constant and, in many cases, abrupt. It’s unclear when these layoffs will lessen, and why exactly they are occurring.