In past Within four months, digital mortgage lender Better.com implemented mass layoffs, not once, but twice. The company has also taken mass layoffs seriously, not once, but twice.
First, on Dec. 1, Better.com laid off about 900 employees over a Zoom video call that eventually went viral. It wasn’t the first company to fire people over Zoom during the global pandemic. But the way she was treated offended many.
CEO and co-founder Vishal Garg has been widely criticized for his cold and stoic approach. A few days later, he also added insults, publicly accusing the affected workers of To “steal” your colleagues and clients by being unproductive.
Besides, only one day before that, Chief Financial Officer Kevin Ryan sent an email to employees announcing that the company will have $1 billion on its balance sheet by the end of this week. Within weeks of being fired, Garg “apologised” and took a “month off”, employees said they were “driven by fear” and several senior executives and two board members resigned.
Then, on March 8, the company Of the remaining 8,000 workers, 3,000 were laid off. and “accidentally started paying severance too early” in the US and India. Many employees first learned of this by seeing a leave check on their workday accounts, the payroll software used by the company. When the officials realized their mistake, the employees said they withdrew the checks from some people’s work accounts. According to one affected employee, who asked not to be named, the investigation into the dismissal proceeded without any further communication from the company.
With these two layoffs, it’s clear that we can all agree on one thing: Better.com could have handled both incidents. BetterIt is clear that layoffs are difficult no matter the circumstances, but sometimes necessary – especially at a time when we are again looking at startups as a way to control cash consumption and raise new capital. We spoke to three HR experts who offered advice on how to make layoffs less painful for everyone involved.
“This is an example of what all companies should not be doing,” Lisa Kalik, director of HR consulting at Wiss & Company, said of Better.com’s handling of the situation. “Reports of forced termination should always be treated with respect, respect and consideration for those concerned.”