The chief executive of a US-based digital mortgage lending company fired 900 people on Zoom calls ahead of the holiday season, it has been reported.
About 15 percent of the company’s employees in the US and India were laid off abruptly as part of a cost-cutting exercise, Vishal Garg, head of Better.com, can be heard saying in a video call last week. , A recording of the call, which has not been confirmed, was shared widely on YouTube.
“If you are on this call, you are part of the unfortunate group that is being laid off. Your employment here has been terminated, with immediate effect,” Mr. Garg can be heard telling the employees.
He began the announcement by saying that the market has changed and the company has to move on with it in order to survive.
“It’s not the news you 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. It’s the second time in my career that I’m like this.” And I don’t want to do that. Last time I did this, I cried. This time I hope to be stronger,” Mr. Garg said.
“We are laying off about 15 per cent of the company,” he said.
He cited market efficiency, productivity and performance as the reasons for the mass layoffs.
The chief executive said all US-based employees would get four weeks of severance, one month full benefits and two months coverup for which the company would pay a premium.
Members of the company’s diversity, equity and inclusion recruiting team were among those fired, reported CNN Business,
Several clips from the video call are being shared on social media, and in one of them an unseen bystander – appears to be an employee of the company – can be heard expressing his shock over the announcement.
“It’s not real. Oh my god, I can’t believe it. It’s not real. Oh no, it can’t happen,” the person can be heard saying on the clip.
“The layoffs are terrifying, especially at this time of year,” the company’s chief financial officer, Kevin Ryan, said in a statement to CNN.
“However, a fortified balance sheet and a low and focused workforce set us up to take the crime to move into a fundamentally evolving homeownership market,” said Mr. Ryan.
Better.com, founded in 2016, recently received $750m (£566m) in investment and is set to go public. CNN reported that the company is preparing to have around $1 billion (£754m) on its balance sheet.
Mr Garg has reportedly been involved in controversies before last week’s incident.
In a mail obtained in 2020 by Forbes magazine, he wrote to staff: “You’re too slow. You’re a bunch of dumb dolphins… so stop it. Stop it. Stop it now. You embarrass me (sic).” are”.
Credit: www.independent.co.uk /