Update: Better.com CEO Vishal Garg has read the social media comments.
According to an internal e-mail sent to staff that has since been posted anonymously on the professional network Blind, Garg apologized 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 in the email. “I own the decision to do the layoffs, but in communicating it I blundered the execution. In doing so, I embarrassed you.”
Following the now infamous Zoom call and public uproar, Garg (who earned more than $25 million last year) reportedly got defensive, accusing staff of stealing from their colleagues and customers and being unproductive. Since then, Better.com’s vice president of communications, head of marketing and head of public relations each submitted their resignations, according to The Daily Beast.
It may have been a strong year for the housing market, but online mortgage company Better.com is making staffing cuts that have hit a nerve online.
According to now viral video, CEO Vishal Garg laid off approximately 900 employees during a group Zoom call in what many are calling a tone deaf, impersonal delivery.
After seemingly making it about himself and by noting that this is only the second time he’s had to deliver this type of message and aimed to be stronger and not cry, Garg told the group they would be laid off effective immediately. Reasons for the layoffs included performance, productivity and market efficiency.
Garg also mistakenly says 15 percent of the workforce was being laid off.
A clip of the Zoom call was quickly uploaded to YouTube and TikTok, which Inman notes has now been viewed more than 3.5 million times.
Per the video, U.S. employees are being provided with four weeks of severance, one month of full benefits and two additional months of health coverage. According to Inman, Better.com is putting a positive spin on the news, saying the layoffs will position the company for growth as lenders shift their focus from refinancing mortgages to providing purchase loans to homebuyers.