The Better.com CEO called a Zoom meeting at short notice. In it, he immediately dismissed around 900 employees without warning.
Better.com CEO Vishal Garg, 43, announced in a Zoom meeting on Wednesday that the mortgage company is laying off around 15 percent of its workforce. The more than 900 employees were not previously informed that they would be fired shortly before the holidays.
“If you take part in this interview, you are part of the unfortunate group that is being sacked,” Garg said in the interview, which was recorded on “CNN Business”. “Your employment relationship is terminated with immediate effect,” continued the CEO. The employees were also informed that they would receive an email from the HR department in which all information and severance payments would be listed.
The company just received $ 750 million
The New York-based company defends its approach to “CNN Business”. “Layoffs are painful, especially at this time of year,” CFO Kevin Ryan said in a statement. “However, a solid balance sheet and a reduced and focused workforce enable us to act aggressively in a radically developing home market.”
No mention was made of the fact that the company had recently received $ 750 million from investors for its upcoming IPO.
CEO Garg Vishal cited market efficiency, performance and productivity as the reasons for the layoffs. “Fortune” later reported that Garg had publicly accused his employees on social media of stealing from their colleagues and customers because they were unproductive and only worked two hours a day. He also advised employees to get better training.
Boss insults his employees
Garg has been involved in controversy before, as shown by an email that he sent to his employees and that “Forbes” has received. There it says: “You are so damn slow. You are a bunch of stupid dolphins. You drive me crazy,” he insulted his staff.
The Daily Beast reported in August that one of Garg’s “most loyal leaders” had received massive perks. Among other things, stock options worth a few million dollars. This person was later suspended for bullying. After the mass layoffs, the company still employs around 9,000 people.