Better.com CEO Vishal Garg, who laid off 900 employees over a Zoom meeting that lasted less than three minutes, is taking time off from the company as employees revolt over a mass layoff he executed in brutal fashion at the start of the month. The company has also hired an outside firm to “do a leadership and cultural assessment,” according to the email.
Here is the email the board of directors sent out Friday morning:
Good Morning,
Vishal and the Board wanted to provide Better employees an update given the very regrettable events over the last week.
Vishal will be taking time off effective immediately. During this interim period Kevin Ryan as CFO will be managing the day-to-day decisions of the company and he will be reporting to the Board. As well, the Board has engaged an independent 3rd party firm to do a leadership and cultural assessment. The recommendations of this assessment will be taken into account to build a long-term sustainable and positive culture at Better. We have much work to do and we hope that everyone can refocus on our customers and support each other to continue to build a great company and a company we can be proud of.
Better Board of Directors
Garg’s leave is also effective immediately, according to a Friday email from the company’s board of directors. Day-to-day operations will be taken over by the company’s CFO, Kevin Ryan. Better.com added that it is hiring a third-party firm to do a “leadership and cultural assessment,” whose recommendations “will be taken into account to build a long-term sustainable and positive culture at Better.”
The online mortgage company’s mass layoff affected about 9% of its staff. Just days later, three of the company’s top communications executives resigned, according to multiple media reports. In a later post on the professional network Blind, Garg accused the fired employees of “stealing” from their colleagues and customers by being unproductive and only working two hours a day, according to Fortune, which confirmed those sentiments in a later interview with the CEO.
In a December 7 letter addressed to the Better.com team, Garg apologized for the way he handled the layoffs, and for making “a difficult situation worse.” He added, “I failed to show the appropriate amount of respect and appreciation for the individuals who were affected and for their contributions to Better,” the letter reads. “I own the decision to do the layoffs, but in communicating it I blundered the execution. In doing so, I embarrassed you.”
