Zoom, the popular video communication company, has made headlines again after firing its President, Greg Tomb, without apparent reason. This move has surprised many, considering that Tomb had been with the company for a few months only. Zoom's spokesperson has announced that there will be no replacement for Tomb's role.
This sudden firing comes just a few weeks after Zoom CEO Eric Yuan announced that the company would let go of around 1,300 employees, about 15% of its workforce. Yuan also mentioned in his email to employees that he would be reducing his salary by 98% for the coming fiscal year and forgoing his corporate bonus. His executive leadership team members also agreed to reduce their base salaries by 20%.
Yuan took responsibility for the layoffs and acknowledged that the company had made mistakes in sustainably analyzing its teams' growth towards their highest priorities. In addition to the severance benefits for laid-off employees, Zoom offers outplacement services, including coaching, workshops, and networking groups.
Zoom's popularity skyrocketed during the COVID-19 pandemic as people relied on video conferencing for remote work, education, and socializing. However, as the pandemic subsides and restrictions ease, the company has struggled to maintain popularity. This has led to the need for job cuts and cost-saving measures, including executive salary reductions.
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Q1. Why did Zoom fire its President, Greg Tomb?
A1. The reason behind Tomb's termination has not been shared by the company. According to a spokesperson for Zoom, they are not looking for any replacement to fill up Tomb's position at the moment.
Q2. How many employees did Zoom fire last month?
A2. Zoom announced that it would be firing 15% of its workforce, which impacted around 1,300 people. In addition to the layoffs, Zoom's CEO also announced that he would be reducing his salary for the coming fiscal year by 98% and letting go of his yearly corporate bonus.