Cloud security company Zscaler plummets after COO announces surprise resignation

Shares of cloud security company Zscaler plunged 10 percent on Thursday, following the sudden departure of Chief Operating Officer William Welch less than two months after the company’s IPO.

Zscaler said late Wednesday that William Welch has resigned as COO and will remain with the company through May 14. In the statement, CEO Jay Chaudhry thanked Welch for his contributions but didn’t say why he was leaving or whether there was a replacement lined up.

“We have strong sales leaders running our Americas and international markets, who will continue to drive our business,” Chaudhry said.

A company spokesperson did not immediately respond to a request for comment.

Zscaler dropped $2.87, or 9.6 percent, to $27.08 as of mid-day on Thursday. The company, which provides security to companies operating in cloud environments like Amazon Web Services and Microsoft Azure, debuted in March after raising $192 million in its IPO. The stock is still up almost 70 percent from its IPO price.

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