HomeIndustriesZoom Fires President Greg Tomb in a Surprising Move, Causes Concerns Among...

Zoom Fires President Greg Tomb in a Surprising Move, Causes Concerns Among Investors

Videotelephony giant Zoom made a surprising move on Friday by firing its President Greg Tomb. The move caused concerns among investors and continued this week’s negative trend for the company’s stock.

Tomb, a high-profile former executive for Google, took the position in June and was tasked to improve the declining demand that Zoom has been experiencing in the post-pandemic period. He was prominently featured on earnings calls and reportedly had a big say in sales operations.

The reason for Tomb’s firing remains unknown, although the company designated it as “termination without cause” in a filing made earlier in the week. Several analysts didn’t like the move at all, believing that it might indicate underlying issues in the company’s management.

Zoom had a rough 2022, seeing its business rapidly slowing down compared to years prior. As part of the efforts to improve its position, the company decided to lay off 15% of its workforce, among other moves.

Zoom’s latest quarterly report saw some improvements, showing $1.22 in adjusted earnings per share, compared to $0.81 estimated by Wall Street. The company’s revenue also beat expectations, coming in at $1.12 billion versus the $1.10 billion expected, but recorded a $104 million net loss, the first time this has happened since 2018. 

Weekly Jobless Claims Decline As Job Market Remains Tight

The latest U.S. weekly jobless claims report showed that the number of Americans filing new claims for unemployment benefits went down this week. This...

Global Central Banks Continue Rate Hikes Amid Banking Crisis

Multiple central banks across the globe implemented interest rate hikes this past week as policymakers look to advance the fight against inflation amid the...

U.S. Futures Up, European Stocks Lower Amid Growing Expectations Of Fed Rate Cut

U.S. futures edged higher on Thursday following bets that the Federal Reserve would cut interest rates in the near term. In contrast, European stocks...