Last Updated on 07/12/2021 by Sanskriti
On a Zoom webinar, an Indian-origin CEO of a US-based housing firm fired over 900 workers, or around 9% of the company’s staff, citing market efficiency, performance, and productivity as reasons for the action.
On the call, Vishal Garg, chief executive of mortgage provider Better.com, stated, “If you’re on this call, you’re part of the unlucky group being laid off.”
People have commented this action as “harsh,” “cold” and a “horrible move” especially when it is time for Christmas.
Mr. Garg told the staff on the call, “Last time I did [this] I cried.”
“I wish the news were different. I wish we were thriving “he stated He spoke in a controlled tone this time, referring to notes on the desk in front of him.
Mr. Garg attributed the mass termination of 15% of Better.com’s workers to poor performance and productivity, as well as market developments.
According to the story, the CEO notified the more than 900 employees in the conversation that they were being let off shortly before the holidays.
He went on to say that employees could receive an email from Human Resources outlining perks and severance packages.
CFO Kevin Ryan said in a statement “Having to conduct layoffs is gut-wrenching, especially this time of year.”
“However a fortress balance sheet and a reduced and focused workforce together set us up to play offense going into a radically evolving homeownership market.”
Last week, Better.com received a $750 million (£565 million) capital infusion from Softbank, a Japanese corporation and significant investor.
“Having to conduct layoffs is gut-wrenching, especially this time of year.” Kevin Ryan further said.
“A fortress balance sheet and a reduced and focused workforce” was necessary to take on the “radically evolving homeownership market”, he said further.
Garg blamed the employees for “stealing” from their coworkers and clients by just being unproductive and working barely two hours a day.
Vishal Garg’s statement to the staff
“Hi everyone, thank you for joining. I come to you with not great news. The market has changed, as you know, and we have to move with it in order to survive so that hopefully we can continue to thrive and deliver on our mission.
“This isn’t news that you’re 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. This is the second time in my career that I’m doing this and I do not want to do this. The last time I did it I cried. This time I hope to be stronger. But we are laying off about 15% of the company for [a number of] reasons: the market, efficiency and performances and productivity.
“If you’re on this call you are part of the unlucky group that is being laid off. Your employment here is terminated. Effective immediately.”