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.