28 January 2022 7:16

CEO of mortgage company fires over 900 employees on Zoom call

"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."

A CEO of a US-based home-ownership company fired more than 900 employees via Zoom.

This was almost 9 per cent of the company’s workforce.

Better.com CEO Vishal Garg, 43 yo, cited market efficiency, performance, and productivity as the reasons behind the move.

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“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,” Mr. Garg said on the call.

“I come to you with not great news. The market has changed, as you know, and we have to move with it in order to survive so that hopefully, we can continue to thrive and deliver on our mission.”

Garg added:

“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 then told the employees could expect an email from the Human Resource detailing benefits and severance package.

This announcement was reportedly filmed by an employee and has since gone viral on social media.

In a blog later, Garg lashed out at his employees for being ‘idle’.

“You guys know that at least 250 of the people terminated were working an average of 2 hours a day while clocking 8 hours+ a day in the payroll system? …They were stealing from you and stealing from our customers who pay the bills that pay our bills.”

Later, in a statement to CNN, Kevin Ryan, CFO 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 offense going into a radically evolving home-ownership market.”

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Many people have termed this announcement as uncompassionate, cold and blunt.

Two current employees have even told Fortune that Garg was renowned for being ‘erratic’.

Better.com is expected to have $1 billion on its balance sheet and is set to go public with a $7.7 billion valuation after backing from Softbank.

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