: Zoom fires its president after less than 9 months in the role


Zoom Video Communications Inc. ZM, +1.45% disclosed in a Thursday filing with the Securities and Exchange Commission that it has fired Greg Tomb, who served as the company’s president. The “termination without cause” is effective Friday. Tomb only joined Zoom back in June, at which time he was announced as overseeing “go-to-market strategy, revenue efforts, and office of the Global CIO.” SVB MoffettNathanson analyst Sterling Auty noted after Thursday’s SEC filing that Tomb’s firing comes after Zoom’s latest outlook implied “a bigger deceleration than the Street had modeled” for enterprise growth, “and now we have a change being made in the executive that was brought in for sales leadership.” Auty is looking to understand “if Zoom will be hiring / appointing a new person to fill the role,” he said in a note to clients, while adding that normally “sales leadership transitions take three quarters to play out.” Chief Executive Eric Yuan announced layoffs in early February impacting 15% of staff, while adding that executives would be seeing pay cuts. Zoom shares were off 0.9% in after-hours trading Thursday. The stock has lost 42% over the past 12 months, as the S&P 500 SPX, +0.76% has declined 9%.

This article was originally published by Marketwatch.com. Read the original article here.

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