March 30, 2023
International Technology

Zoom Fires President Amidst Decreased Demand and Layoffs

Zoom has reportedly fired its president Greg Tomb, according to details in the company’s regulatory filing. Tomb joined the company in June 2022, bringing with him more than 20 years of experience in the tech field, including as a former Google executive. During his tenure, Tomb was active in earnings calls and the sales department.

The details of Tomb’s firing were not disclosed, but the filing stated that his appointment was terminated “without cause”. A spokesperson for Zoom stated that the company is not currently seeking a replacement for Tomb.

When Tomb was hired as president in 2022, Zoom founder and CEO Eric Yuan expressed excitement and confidence in his ability to help the company “drive growth”. However, in 2023, Zoom and other companies were hit with the reality that the demand bubble created by the COVID-19 pandemic had burst. As demand decreased, Zoom faced losses and had to lay off a significant portion of its workforce.

Yuan acknowledged that the company had not taken enough time to analyze its teams or assess if it was growing sustainably towards its highest priorities. In response to the decreased demand, Zoom announced a 15% decrease in its workforce.

Zoom experienced a surge in users during the pandemic, becoming one of the industry leaders in the video conferencing space. However, now that demand has declined, the company will need to make strategic decisions to survive against more established players like Google Meet, Microsoft Teams, and Slack.

Zoom’s decision to terminate its president Greg Tomb without cause, amidst a period of declining demand, signals the company’s need to make strategic changes to remain competitive in the video conferencing market.

The pandemic-induced surge in demand was a unique opportunity for the company, but now it must adapt to a new reality. It remains to be seen how Zoom will navigate this new landscape, but with its track record of innovation and technology leadership, the company has the potential to thrive once again.

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