The $7.7 billion unicorn, Better.com, announced a nine percent layoff with their CEO, Vishal Garg, via a Zoom meeting. Better.com, the online mortgage and homeownership firm, revealed that it had terminated 900 employees, effective immediately.
The viral video of the Zoom call where all 900 employees and CEO Vishal Garg was recorded by an employee who got fired. The CEO cites market performance, work efficiency, and productivity as the mass layoff in the video.
At the start of his announcement, Vishal Garg says,
“I come to you with not great news. The market has changed, and we have to move with it to survive so that hopefully, we can thrive and hopefully deliver on our mission.”
Better Mortgage CEO Vishal Garg’s net worth
According to multiple publications, Vishal Garg is worth around $4 billion. He began his career in creating his ventures at the age of 21 when he dropped out of the investment banking analyst program at Morgan Stanley. Garg then started a loan-service firm specially catered to students in 2000. Five years later, the firm was acquired by Merrill Lynch.
From 1999 to 2014, Vishal Garg also served as the founding partner of 1/0 Capital, an investment holding company specializing in consumer fin-tech. In 2014, Vishal founded Better Mortgage, which grew around 400% in 2020.
What did Better.com CEO Vishal Garg say to the 900 employees?
The Indian-American CEO addressed the employees by saying,
“This isn’t the news you are going to want to hear. But ultimately, it was my decision, and I wanted you to hear it from me. It’s been a really, really challenging decision to make.”
He further added,
“If you’re on this call, you are part of the unlucky group being laid off. Your employment here is terminated effective immediately.”
Garg (43) also revealed that this is not the first time he has laid-off employees, and he said that he cried the last time he had to do a mass layoff.
“This is the second time in my career I’m doing this, and I do not, do not want to do this. The last time I did it, I cried. This time I hope to be stronger.”
What did the laid-off employees receive?
The US-based employees will receive four weeks of severance pay, along with one month of benefits, as well as two months of cover-up pay for which Better.com will carry the premium. Terminated employees will also reportedly receive an email from the firm's HR department that will outline additional details regarding the benefits to which they are entitled.