CEO Feels Terrible About Laying Off 900 Employees Over Video Chat, Does It Anyway
"If you’re on this call, you are part of the unlucky group that is being laid off," mortgage lender Better.com CEO Vishal Garg said.
By Jason Koebler
3.12.21
On the Clock
On the Clock is Motherboard's reporting on the organized labor movement, gig work, automation, and the future of work.
“This is the second time in my career 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,” Garg says early in the video, before noting that he is laying off "about" 15 percent of the company’s workforce just before the holidays. More than a minute into the call, Garg says, “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.”
Garg says in the video that he wishes that the company “was thriving as enthusiastically as we were at the beginning of this year, but that that’s not the case.” He then adds that he is sure that laid-off employees “will leave us and be more successful, more fortunate, and luckier in your next endeavor. I wish you all the best of luck.”
There is, of course, no good way to lay people off, but what makes this video particularly brutal is Garg's focus on his own feelings, rather than those of his employees; his repeated invoking of laid-off employees’ bad "luck"; and, most strikingly, that it has the look and feel of an “if you’re watching this, I’m already dead” video. The twist, of course, is that Garg is fine and his employees are not.
"If you’re on this call, you are part of the unlucky group that is being laid off," mortgage lender Better.com CEO Vishal Garg said.
By Jason Koebler
3.12.21
On the Clock
On the Clock is Motherboard's reporting on the organized labor movement, gig work, automation, and the future of work.
“This is the second time in my career 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,” Garg says early in the video, before noting that he is laying off "about" 15 percent of the company’s workforce just before the holidays. More than a minute into the call, Garg says, “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.”
Garg says in the video that he wishes that the company “was thriving as enthusiastically as we were at the beginning of this year, but that that’s not the case.” He then adds that he is sure that laid-off employees “will leave us and be more successful, more fortunate, and luckier in your next endeavor. I wish you all the best of luck.”
There is, of course, no good way to lay people off, but what makes this video particularly brutal is Garg's focus on his own feelings, rather than those of his employees; his repeated invoking of laid-off employees’ bad "luck"; and, most strikingly, that it has the look and feel of an “if you’re watching this, I’m already dead” video. The twist, of course, is that Garg is fine and his employees are not.
‘F—k you, dude’: Startup valued at $7B gets flack as CEO lays off hundreds over Zoom
Joshua Bote, SFGATE
Dec. 3, 2021
Just days after receiving a $750 million cash infusion, a tech startup that Forbes branded in October as a “unicorn,” valued at $7 billion, laid off hundreds of employees in a manner that some online deemed “brutal.”
Better.com, a digital mortgage lender with offices in Oakland, laid off 900 employees weeks before Christmas on a mass Zoom call. Only those being laid off were invited. It is a stark tidal shift for the company, which announced it was going public earlier this year.
“I come to you with not great news,” CEO Vishal Garg said in the video, which has since circulated on TikTok and YouTube. “The market has changed, as you know, and we have to move with it in order to survive.”
“This isn’t news you’re gonna wanna hear, but ultimately it was my decision and I wanted you to hear it from me,” Garg added. “The last time I did this, I cried. This time, I hope to be stronger.”
But he gets back to business seconds later, telling those in the Zoom call that they were the ones to be laid off. (A spokesperson for the company later clarified to SFGATE that only 9% of employees were laid off. The discrepancy between Garg's and the official company percentage remains unclear.)
“If you’re on this call, you are part of the unlucky group that is being laid off,” Garg said, citing “market efficiency, performances, productivity” among the reasons for the layoffs.
The person recording the video is seemingly furious. “F—k you, dude,” he says as Garg announces this news.
Garg also offered his hopes that those who got laid off would be “more successful, more fortunate, and luckier in your next endeavor.”
But Better.com recently received a substantial cash infusion from its backers. Chief Financial Officer Kevin Ryan said in an internal email, which TechCrunch obtained, that the firm would have “$1 billion of cash on the company’s balance sheet,” thanks to SoftBank and Aurora Acquisition. The company also hired 7,000 people during the pandemic, reported Business Insider.
Meanwhile, Ryan said in a statement sent to SFGATE, “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."
Joshua Bote, SFGATE
Dec. 3, 2021
Just days after receiving a $750 million cash infusion, a tech startup that Forbes branded in October as a “unicorn,” valued at $7 billion, laid off hundreds of employees in a manner that some online deemed “brutal.”
Better.com, a digital mortgage lender with offices in Oakland, laid off 900 employees weeks before Christmas on a mass Zoom call. Only those being laid off were invited. It is a stark tidal shift for the company, which announced it was going public earlier this year.
“I come to you with not great news,” CEO Vishal Garg said in the video, which has since circulated on TikTok and YouTube. “The market has changed, as you know, and we have to move with it in order to survive.”
“This isn’t news you’re gonna wanna hear, but ultimately it was my decision and I wanted you to hear it from me,” Garg added. “The last time I did this, I cried. This time, I hope to be stronger.”
But he gets back to business seconds later, telling those in the Zoom call that they were the ones to be laid off. (A spokesperson for the company later clarified to SFGATE that only 9% of employees were laid off. The discrepancy between Garg's and the official company percentage remains unclear.)
“If you’re on this call, you are part of the unlucky group that is being laid off,” Garg said, citing “market efficiency, performances, productivity” among the reasons for the layoffs.
The person recording the video is seemingly furious. “F—k you, dude,” he says as Garg announces this news.
Garg also offered his hopes that those who got laid off would be “more successful, more fortunate, and luckier in your next endeavor.”
But Better.com recently received a substantial cash infusion from its backers. Chief Financial Officer Kevin Ryan said in an internal email, which TechCrunch obtained, that the firm would have “$1 billion of cash on the company’s balance sheet,” thanks to SoftBank and Aurora Acquisition. The company also hired 7,000 people during the pandemic, reported Business Insider.
Meanwhile, Ryan said in a statement sent to SFGATE, “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."
Better.com CEO Fires Employees In A Cold One-Way Video Announcement
Jack Kelly
Senior Contributor
FORBES
Careers
I write actionable interview, career and salary advise
Shot of a stressed businesswoman with headache in the office after hearing the bad news
Running a business isn’t easy. Sometimes market forces work against you, and the company doesn’t do well. In trying times, you see who is a real leader. They should stand strong and show empathy towards the employees who are impacted by the unfortunate turn of events.
Vishal Garg, CEO of ‘unicorn’ mortgage lender startup Better.com—after receiving a $750 million cash infusion with a valuation of around $7 billion—bluntly informed his 900 employees that a large number of people will be fired in a cold, awkward one-way video announcement, Thursday.
Careers
I write actionable interview, career and salary advise
Shot of a stressed businesswoman with headache in the office after hearing the bad news
Running a business isn’t easy. Sometimes market forces work against you, and the company doesn’t do well. In trying times, you see who is a real leader. They should stand strong and show empathy towards the employees who are impacted by the unfortunate turn of events.
Vishal Garg, CEO of ‘unicorn’ mortgage lender startup Better.com—after receiving a $750 million cash infusion with a valuation of around $7 billion—bluntly informed his 900 employees that a large number of people will be fired in a cold, awkward one-way video announcement, Thursday.
Looking visibly uncomfortable, Garg said that 15% of the workforce would be laid off. In a monotone voice he said, “This is the second time in my career 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.”
During the holiday season, it's standard company practices to hold off on bad news such as mass terminations. Instead of waiting some weeks for the staff to enjoy family and friends during the holiday season, Garg dropped the bombshell announcement, “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.”
In a video version of the termination call, a presumed disgruntled employee cursed out the CEO saying “F*ck you, dude,” over the announcement. Garg did say, “I wish you all the best of luck,” in their new endeavors.
Kevin Ryan, Better.com's CFO, said in a statement that the company only laid off 9 percent of its employees, and “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
This is not the first time people were let go via a one-sided or cold video announcement. Back in May, 2020, at the early stages of the Covid-19 outbreak, ridesharing app company Uber announced the layoff of 3,500 employees, representing 14% of its workforce. In a sign of the times, with employees working from home, Uber informed the job-loss casualties via an online Zoom call.
The head of Uber’s customer service office, Ruffin Chevaleau, told workers that today was their last day at the company. Chevaleau soberly shared that Uber’s business was hit hard. The company’s business dropped by over 50%. She said, "With trip volume down, the difficult and unfortunate reality is there is not enough work for many front-line customer support employees."
Chaveleau added, "As a result, we are eliminating 3,500 front-line customer support roles. Your role is impacted and today will be your last working day with Uber." Uber CEO Dara Khosrowshahi said of the downsizing, "We're focused on navigating through this crisis that absolutely leaves us in a stronger position, as the world starts to recover." Khosrowshahi announced that he will be forsaking his base salary.
Scooter-sharing startup Bird fired 406 employees in April, 2020 via a “Black Mirror” style video. The unsuspecting workers were asked to log into a one-way Zoom call, after being informed that all other appointments were cancelled. A disembodied voice read a script informing the person that they’ve been laid off. Their Slack and other accounts were shut off and given end dates.
24 Hour Fitness, a privately held national chain of about 430 gyms with 22,000 workers, fired employees via a phone call. The gym’s Chief human resources officer, Tami Majer, sent an email to workers asking them to participate in a phone call to discuss “important company updates,” indicating that they’ll be paid for their time. On the call, the employees were told that they’ve been let go. There wasn’t any in-depth discussion around severance packages, benefits or any other color provided as to what's going on.
Airbnb took a different, more enlightened approach to layoffs during the height of the virus outbreak. The company announced that it would downsize 25% of its workforce. Roughly 1,900 people out of the company’s 7,500 total workforce would lose their jobs. At the time, this was one of the largest layoffs that we’ve seen out of Silicon Valley due to the effect of the coronavirus outbreak. What’s different about Airbnb is the manner in which the company informed employees of its plans.
In a message to staff, Airbnb cofounder and CEO Brian Chesky said, “Some very sad news. Today, I must confirm that we are reducing the size of the Airbnb workforce.” Chesky then advised his employees that he will be transparent and offer details, so that everyone is fully aware of what’s happening.
He was forthright and didn't try to spin the narrative, as he stated, “We are collectively living through the most harrowing crisis of our lifetime, and as it began to unfold, global travel came to a standstill. Airbnb’s business has been hit hard, with revenue this year forecasted to be less than half of what we earned in 2019. In response, we raised $2 billion in capital and dramatically cut costs that touched nearly every corner of Airbnb.”
He also assured the staff that the “decisions are not a reflection of the work from people on these teams.” Chesky thanked his employees by saying, “We have great people leaving Airbnb, and other companies will be lucky to have them.” The chief executive promised that the company will take care of those that are leaving. “We have looked across severance, equity, healthcare and job support and done our best to treat everyone in a compassionate and thoughtful way,” Chesky added.
His message also said, “Employees in the U.S. will receive 14 weeks of base pay, plus one additional week for every year at Airbnb. Tenure will be rounded to the nearest year. For example, if someone has been at Airbnb for three years and seven months, they will get an additional four weeks of salary, or 18 weeks of total pay.” Twelve months of health insurance will be covered through COBRA.
It's important to demonstrate compassion and understanding, as being let go is a traumatic experience. The impacted employees are worried about their financial situation, scared about trying to quickly find a new job, concerned that companies may perceive the firing as if they did something wrong, the loss of identity that’s tied up with your job, and missing the camaraderie of close workmates.
Real leadership is needed in a time of crisis. It's important to show empathy in sharing the bad news. Have everything ready for the impacted workers such as insurance coverage, date of departure, severance packages, recommendation letters, introductions to recruiters who could help with finding new jobs. Actively listen to the staff who are part of the downsizing, and take actions to help them through this difficult transitionary period.
Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Post author By admin
Post date December 4, 2021
1.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
2 days ago · Better.com, the SoftBank-backed mortgage startup with a wildly temperamental founder, laid off roughly 10 percent of its workforce today, or about 900 people in the United States and India ...
https://www.thedailybeast.com/softbank-backed-startup-bettercom-fires-900-in-brutal-cleansing
2.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Dec 01, 2021 · Meredith Corp. is being accused of exploiting laid off workers and stiffing them on pay for working on Ayesha Curry's quarterly Sweet July magazine.
https://nypost.com/2021/12/01/meredith-accused-of-stiffing-staffers-on-ayesha-currys-mag/
Advertisements
3.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Nov 20, 2021 · Time’s Up CEO Exits as Most of Staff Laid Off: ‘This Is a Needed Reset, Not a Retreat’ Interim president Monifa Bandele has left the scandal-marred organization just two months after CEO ...
https://www.indiewire.com/2021/11/times-up-ceo-exits-staff-laid-off-1234680676/
4.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
May 15, 2021 · The CEO of Kroger, America’s largest grocery store chain, has been criticised for receiving a record $22.4million in compensation after …
https://www.yahoo.com/news/kroger-ceo-blasted-22-4m-180415832.html
5.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Oct 17, 2021 · In 2020, Smith laid off some 1,500 of the 9,000 employees that worked across the company's roughly 100 dealerships. Now, salespeople are moving around 18 cars per month, double the 8-10 they were ...
https://www.yahoo.com/news/car-dealership-ceo-says-cut-164008693.html
1.Amazon (company)
Kingdom. In 2001, 850 employees in Seattle were laid off by Amazon.com after a unionization drive. The Washington Alliance of Technological Workers (WashTech)
https://en.wikipedia.org/Amazon (company)
Advertisements
2.GameStop
pandemic in North America, with employees and social media users accusing the company of placing its business ahead of the safety of its staff and customers,
https://en.wikipedia.org/GameStop
3.JPMorgan Chase
how their CEOs are compensated in comparison with their employees. In public filings, companies have to disclose their "Pay Ratios," or the CEO's compensation
https://en.wikipedia.org/JPMorgan Chase
Post author By admin
Post date December 4, 2021
1.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
2 days ago · Better.com, the SoftBank-backed mortgage startup with a wildly temperamental founder, laid off roughly 10 percent of its workforce today, or about 900 people in the United States and India ...
https://www.thedailybeast.com/softbank-backed-startup-bettercom-fires-900-in-brutal-cleansing
2.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Dec 01, 2021 · Meredith Corp. is being accused of exploiting laid off workers and stiffing them on pay for working on Ayesha Curry's quarterly Sweet July magazine.
https://nypost.com/2021/12/01/meredith-accused-of-stiffing-staffers-on-ayesha-currys-mag/
Advertisements
3.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Nov 20, 2021 · Time’s Up CEO Exits as Most of Staff Laid Off: ‘This Is a Needed Reset, Not a Retreat’ Interim president Monifa Bandele has left the scandal-marred organization just two months after CEO ...
https://www.indiewire.com/2021/11/times-up-ceo-exits-staff-laid-off-1234680676/
4.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
May 15, 2021 · The CEO of Kroger, America’s largest grocery store chain, has been criticised for receiving a record $22.4million in compensation after …
https://www.yahoo.com/news/kroger-ceo-blasted-22-4m-180415832.html
5.Better.com CEO attacks laid off employees, accusing them of ‘stealing’ by working only two hours daily
Oct 17, 2021 · In 2020, Smith laid off some 1,500 of the 9,000 employees that worked across the company's roughly 100 dealerships. Now, salespeople are moving around 18 cars per month, double the 8-10 they were ...
https://www.yahoo.com/news/car-dealership-ceo-says-cut-164008693.html
1.Amazon (company)
Kingdom. In 2001, 850 employees in Seattle were laid off by Amazon.com after a unionization drive. The Washington Alliance of Technological Workers (WashTech)
https://en.wikipedia.org/Amazon (company)
Advertisements
2.GameStop
pandemic in North America, with employees and social media users accusing the company of placing its business ahead of the safety of its staff and customers,
https://en.wikipedia.org/GameStop
3.JPMorgan Chase
how their CEOs are compensated in comparison with their employees. In public filings, companies have to disclose their "Pay Ratios," or the CEO's compensation
https://en.wikipedia.org/JPMorgan Chase
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