Better.com is a mortgage company set in New York. However, they’ve recently gained recognition, not for their work, but for the way they laid over 900 of their employees off.
On 1st December, CEO Vishal Garg met his employees on a Zoom call. He informed them that the company needed to let 15% of the workforce go. To their surprise, Garg announced those “part of the unlucky group” was everyone in the Zoom call.
The unfortunate employees had not seen this coming. As one understandably shared, he thought he was safe. “I had perfect reviews and thought I was an integral part of the team,” he told NBC news. The employee also stated that he felt let down as he had put in effort to help build up the company. “It looks like I just wasted my time,” he said.
Garg claimed that the decision to lay them off had not come easy. “This is the second time in my career I’m doing this and I do not want to do this,” he told the employees. ” The last time I did it, I cried. This time I hope to be stronger.” The CEO shed no tears as he told them the reasons for the culling. Garg citied factors such as market efficiency, performances and productivity before abruptly firing everyone in the call. He added that employees would receive an email from HR about their benefits and severance.
Chief Financial Officer Kevin Ryan told CNN Business that “having to conduct layoff is gut wrenching, especially this time of year.” Yet, he claims it is a necessary evil. “A fortress balance sheet and a reduced and focused workforce together (sets) us up to play offense going into a radically evolving homeownership market,” he stated. However, many have pointed out that among those fired were the diversity, equity and inclusion recruiting team.
Although Garg ended the meeting by wishing his employees well, multiple sources confirmed he was feeling the exact opposite. Someone claiming to be one of the laid off employees took to TikTok to share their side of the story. According to them, Garg entered another Zoom meeting after that with the “survivors” and disparaged the terminated employees. “He pretty much said we were dragging the rocket ship down,” they stated. “He also told everyone that nobody is safe.” Apparently Garg would be keeping a close eye on his employees from now on.
Fortune later reported on Friday (3rd December) that Garg had claimed the laid off employees were “stealing” from the company. The CEO apparently posted a message on Blind, an anonymous job forum, complaining about them. “You guys know that at least 250 of the people terminated were working an average of 2 hours a day while clocking in 8 hours+ a day in the payroll system?” he asked. This was, in his eyes, equivalent to them stealing from the company and their customers. Garg confirmed he had posted the message and claimed that was what employee “statistics” had showed.
This isn’t the first time Garg has reportedly shamed his employees. Forbes once obtained an email he sent to a staff member which called them “dumb dolphins“. He also claimed they were “too damn slow” and were embarrassing him. Additionally, The Daily Beast reported an incident in which one of Garg’s “most loyal” people received extraordinary bonuses. The same person was later found to be involved in bullying and was placed on administrative leave.
Curiously enough, many feel the layoffs have something to do with the $750 million Better.com received last week. One employee claimed it was an indication of how badly the company needed capital. Another supposed ex-employee believes the layoffs were a stipulation for the cash.
Either way, netizens agree that Garg’s actions are red flags. Many dislike the impersonal way he laid off the employees as well as the abruptness of it. Others have been sympathising with those let off. A few even advised remaining employees to resign on their own.
Who knows what the future holds for Better.com? Only time will tell if the abrupt culling has helped the company or destroyed it instead.
Check out a video of the Zoom meeting here:
https://www.tiktok.com/foryou?is_copy_url=1&is_from_webapp=v1&q=better.com&t=1638841249698&item_id=7038229236024560943#/@secretaryofjustice/video/7038229236024560943
Here’s the story of a supposed ex-employee:
@stardust.society Better.com laid off 900 people this week #layoff #layoffs #laidoff #jobsearch
Sources: China Press, CNN Business, NBC News, SFGate, Fortune, TikTok (1)(2)
