Get All Access for $5/mo

CEO Lays off 900 Employees in Shocking Video Call Better.com has let go of 9% of its workforce.

By Emily Rella Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

YouTube
Better.com CEO lays off 900 employees

Bah humbug!

Spirits were not so bright over at Better.com when CEO Vishal Garg laid off 900 employees in a Zoom meeting.

The leaked video footage shows Garg saying that the company will be letting go of 15% of its workforce, though it was later clarified that the layoffs accounted for 9% of employees.

"The market has changed, as you know, and we have to move with it in order to survive," he said. "This isn't news you're gonna wanna 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."

Garg told employees that this is the second time in his career that he's had to deliver mass layoffs and said that he hoped we wouldn't cry during the process this time around.

"If you're on this call, you are part of the unlucky group that is being laid off," Garg explained in the video. "Your employment here is terminated effective immediately."

The woman videotaping the call can be heard crying and pleading to the screen.

"This is not real," she heartbreakingly says. "After everything we did."

Better.com is a digital mortgage and loan website that launched in 2016.

The website is currently down, with a note that says it is "doing a little home improvement."

Reports state that the company is valued at $7 billion after receiving a $750 million "cash infusion" just days ago.

This latest move is not Garg's first bout with scandal at the company.

In an email last November obtained by Forbes, the CEO seemed to verbally abuse employees by calling them dumb and slow.

"You are TOO DAMN SLOW. You are a bunch of DUMB DOLPHINS and…DUMB DOLPHINS get caught in nets and eaten by sharks," the email said. "SO STOP IT. STOP IT. STOP IT RIGHT NOW. YOU ARE EMBARRASSING ME."

Better.com currently has main offices in California, North Carolina and Texas.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Business Process

How CEOs Can Take Control of Their Emails and Achieve Inbox Zero

Although there are many methodologies that leaders can use to manage their emails effectively, a consistent and thought-through process is the most effective way to systemize and respond to emails and is a step of stewardship for the effective leader.