When the CEO of Better.com giant gorgo dismissal of 900 employeesOr about 9% of the company’s workforce, as of early December, the startup world was shocked by its ruthless delivery.
Now, a video has surfaced of Garg and CFO Kevin Ryan addressing the remaining employees as they fire the CEO, confirming several reports of his violent style and harsh words towards those affected.
Video obtained by gaming-updates shows Garg dealing with layoffs, admitting he made some mistakes.
We have chosen not to release the video to protect the identity of the source, but we have selected the most important snippets from the 12-minute meeting transcript here:
About two minutes after the meeting, Garg says:Make no mistake, we also removed redundant roles — those that could have been suppressed but were in the wrong place, at the wrong time, with the wrong assignments, and were not important to the mission.”
About four minutes later, Garg also acknowledged that the company was continuing to hire employees, including some interns, amid layoffs, while issuing a thinly veiled threat at the time: “…it’s because we expect these people to be super productive and add value, and if they don’t, we leave them too.”
“In the future, we will become thin, angry and hungry. We will not waste time raising capital. We will not waste time on what investors think. We will spend time developing this business, which is likely to be a bloodbath in the mortgage industry over the next two years. ,
In the nearly 8-minute video, Garg admits that he was not disciplined in the company’s money management and hiring strategy, attributing this to a second mass layoff of more than 3,000 people three months later. It also helps support claims from multiple sources that the company is currently “losing $50 million a month.”
“TeaToday we believe that we hired too many people and hired the wrong people. And in this we have failed. I did not succeed. I have not been punished for the last 18 months. We made $250 million last year, and guess what, we probably threw away $200 million. We probably could have made more money last year and be thin, angry and hungry.”
He also bluntly stated that the company lost $100 million last quarter, saying it was his “fault” for not firing his employees sooner.
“Today we should have done what we did 3 months ago… I’m telling you this now, I also told the board earlier… you shouldn’t fail twice. You are encouraged to fail once, but you are not allowed to fail twice.”
Ryan addresses the staff at the end of the video.
“There are people who will say that raising a lot of money in one week and cutting the workforce is inconsistent – how can you do that? Well, we think they are completely compatible. As Vishal said, every year thousands of startups start, every year thousands of startups fail. As a management team, we will always do what keeps the company in the best possible position and that is a very strong balance sheet and a cost effective company moving towards profitability. So it’s all about humiliation. It’s darkest before dawn, it’s 2022 and there’s going to be a lot of carnage in this industry, and we’ll take advantage of it – skinny, mean, and now we have a chance to grow. we have grown. So even though it’s hard, we’re getting through this, this too will pass, and by 2022.”
The video shows what many former employees describe: management that comes across as arrogant in its approach, takes a ruthless stance when it comes to layoffs, and acknowledges mismanagement of financial and human capital.
gaming-updates has contacted Better.com for a comment but has not received a response at the time of writing.