Zoom, the popular video conferencing platform, has terminated the contract of its president, Greg Tomb, without providing a reason. Tomb, a former Google executive, had only held the position since June 2022 and was responsible for the company’s sales and earnings calls. However, the tech firm has stated that it is not currently looking for a replacement.
CEO Eric Yuan had praised Tomb’s experience in scaling companies, and his appointment had come during a period of impressive growth for Zoom. The company’s fortunes had soared during the pandemic, becoming a household name as remote working and video conferencing became increasingly prevalent. In April 2020, it reported 300 million daily participants.
However, as the pandemic has receded and the world has begun to return to in-person meetings, demand for Zoom’s services has waned. The company was forced to cut 1,300 jobs – 15% of its staff – in February 2023, after having tripled its head count during the pandemic. “We didn’t take as much time as we should have to thoroughly analyze our teams”, said Yuan, in reference to the layoffs.
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As the economic downturn bites, analysts suggest that Zoom may struggle to compete with rivals such as Google Meet, Microsoft Teams and Slack. The company has attempted to diversify, announcing plans last year to incorporate email and calendar features and a chatbot. However, some experts warn that this may be too little, too late.
In a statement, Zoom did not offer any explanation for Tomb’s departure. However, his termination comes as the company battles to remain competitive in a crowded market. “This is not the news that Zoom needed right now”, said Wedbush Securities analyst Dan Ives. “Zoom needs to show growth in new areas to justify its lofty valuation.”
