Better CEO who fired 900 workers over a zoom call is taking time off. The CEO of digital mortgage firm Better.com, who fired about 900 employees on a Zoom call last week, is said to be taking time off from the company
And this is been done while it conducts a “leadership and cultural assessment,” according to an email to employees from the board of directors.
As first reported by Motherboard, the board’s email says following “the very regrettable events over the last week,” CEO Vishal Garg will be taking time off “effective immediately,” and Better CFO Kevin Ryan will manage day-to-day operations.
Better CEO Who Fired 900 Workers over a Zoom Call Is Taking Time Off
Better, which Garg founded in 2012, has been in the spotlight after he held a Zoom call with 900 employees on December 3rd to inform them they were losing their jobs.
“If you’re on this call, you are part of the unlucky group that is being laid off,” Garg reportedly said on the call. He lamented that it was not the first time he had to conduct layoffs: “The last time I did it, I cried, this time I hope to be stronger.”
The video call was captured by Better employees and widely circulated on social media. It has since been taken down.
Garg Apologizes On How He Handled the Layoffs
Garg later sent a message to Better employees apologizing for how he handled the layoffs. “I failed to show the appropriate amount of respect and appreciation for the individuals who were affected.
And for their contributions to Better,” Garg wrote. “I realize that the way I communicated the news made a difficult situation worse.”
Following the news of the layoffs, reports of Garg’s past insensitive comments and behavior began to trickle out;
Motherboard reported he once referred to a top investor in Better as “sewage” and reportedly told Better employees that instead of taking a day off for Indigenous Peoples’ Day, it was better for them to work and earn the company “capital, and therefore our freedom.”
Better Pushed Back Its Planned SPAC
Bloomberg has reported that Better pushed back its planned SPAC, which was supposed to close in the fourth quarter.
On November 30th, Aurora Acquisition Corp. and SoftBank amended the terms of their financing agreement with Better, giving the mortgage company a cash infusion of about $750 million. Bloomberg notes that the day after the new SPAC terms were announced, Garg fired the 900 workers.
Better.com is a direct lender providing online mortgage financing. Borrower options include conventional loans, jumbo loans, adjustable-rate mortgages, and refinancing loans. It was launched in the year 2016.
Potential borrowers can apply for two types of preapproval letters from Better Mortgage. Better Mortgage will use your self-reported income and a soft credit check for a basic preapproval.
But a verified preapproval requires a hard credit check and a more detailed review of your financial information.
Your mortgage rate will depend on attributes such as market conditions and your credit history, and you can typically expect to close three to six weeks after locking your rate.