CEO fires 900 employees over Zoom right before holidays
Better.com CEO Vishal Garg informed more than 900 employees that they were being let go from the company, which provides digital mortgage services for prospective homeowners, just weeks before the holidays in an online video call last week.
On Wednesday, Garg informed the employees on the three-minute-long Zoom call that, "If you're on this call, you are part of the unlucky group that is being laid off. Your employment here is terminated effective immediately."
He added that employees could expect an email from HR detailing benefits and severance. According to The Independent, terminated employees will receive a month of severance pay, a month of full benefits, and two months of cover-up during which Better.com will pay the premium.
In a statement to CNN Business, CFO Kevin Ryan said, "Having to conduct layoffs is gut wrenching, especially this time of year. However a fortress balance sheet and a reduced and focused workforce together set us up to play offence going into a radically evolving homeownership market."
The mass layoffs came just one day after it was revealed that the company, which announced its intention to go public in May, would be receiving a $750 million cash infusion from its SPAC (Special Purpose Acquisition Company) backers.
Garg cited market efficiency, performance and productivity as the reason behind the firings. Fortune later reported that he accused the employees of “stealing” from their colleagues and customers by being unproductive and only working two hours a day.
On the call, Garg said, “This is the second time in my career I'm doing this and I do not want to do this. The last time I did it, I cried,” while remaining emotionless throughout. Among those fired were the diversity, equity and inclusion recruiting team.
Image: YouTube