An Indian-origin CEO of a US-based homeownership company has abruptly fired more than 900 employees, about 9 per cent of its workforce, on a Zoom webinar, citing market efficiency, performance and productivity as the reasons behind the move.
On a Zoom webinar last Wednesday, Better.com CEO Vishal Garg abruptly announced that the mortgage company is laying off about 9 per cent of its workforce, CNN reported.
Garg cited market efficiency, performance and productivity as the reason behind the firings, the report said.
“If you’re on this call, you are part of the unlucky group that is being laid off,” he said on the call.
“Your employment here is terminated effective immediately,” Garg said.
The CEO informed the more than 900 employees on the call that they were being terminated just before the holidays, the report said.
He then said employees could expect an email from the Human Resource department, detailing benefits and severance.
“Having to conduct layoffs is gut wrenching, especially this time of year,” CFO Kevin Ryan said in a statement to CNN Business.
“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.”
Meanwhile, Fortune reported that Garg accused the employees of “stealing” from their colleagues and customers by being unproductive and only working two hours a day.
“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,” Garg said on the call.
Among those fired were the diversity, equity and inclusion recruiting team.
According to a report published in India Today, an employee, who appears to have been part of the meeting, recorded the call on her mobile phone and shared it on social media. This was definitely a piece of shocking news that came just ahead of the holiday season.