Better.com On a Zoom webinar on Wednesday, CEO Vishal Garg stated the mortgage company is cutting off around 9% of its personnel, unexpectedly alerting the more than 900 employees on the call that they would be laid off shortly before the holidays.
“If you’re on this call, you are part of the unlucky group that is being laid off,” Garg said on the call, a recording of which was viewed by CNN Business. “Your employment here is terminated effective immediately.”
Employees should receive an email from HR outlining benefits and severance packages, he said.
“Having to conduct layoffs is gut wrenching, especially this time of year,” CFO Kevin Ryan said in a statement to CNN Business. “However a fortress balance sheet and a reduced and focused workforce together set us up to play offense going into a radically evolving homeownership market.”
The firings, according to Garg, were due to market efficiency, performance, and productivity. Garg later accused the employees of “stealing” from their coworkers and clients by being inefficient and barely working two hours per day, according to Fortune.
“This is the second time I’ve done this in my career, and I don’t want to do it again. I wept the last time I did it “Garg stated during the call, which was brief and emotionless.
The diversity, equity, and inclusion recruiting staff was among those sacked.
The Softbank-backed mortgage lender launched its IPO via a SPAC in May and received $750 million in cash as part of the deal last week. The corporation expects to have a balance sheet of more than $1 billion.
Garg has been in the news previously, as indicated by an email he sent to his team that Forbes obtained.
“You are TOO DAMN SLOW. You are a bunch of DUMB DOLPHINS… SO STOP IT. STOP IT. STOP IT RIGHT NOW. YOU ARE EMBARRASSING ME,” he wrote.
According to The Daily Beast, one of Garg’s most “loyal lieutenants” was given significant bonuses, including millions of dollars in stock options that could be vested immediately, which were not available to other employees. After being accused of bullying, the person was placed on administrative leave.