Friday, September 30, 2022

"Better.com CEO fires 900 employees over Zoom"/ "'It was callous,' says man laid off with 900 employees on Zoom call"


Dec. 6, 2021 "Better.com CEO fires 900 employees over Zoom": Today I found this article Ramishah Maruf on CNN Business:

New York, NY (CNN) Better.com CEO Vishal Garg announced the mortgage company is laying off about 9% of its workforce on a Zoom webinar Wednesday abruptly informing the more than 900 employees on the call they were being terminated just before the holidays.

"If you're on this call, you are part of the unlucky group that is being laid off," Garg said on the call, a recording of which was viewed by CNN Business. "Your employment here is terminated effective immediately."
He then said employees could expect an email from HR 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."
Garg cited market efficiency, performance and productivity as the reason behind the firings. Fortune later reported 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, which remained short and emotionless.
      Among those fired were the diversity, equity and inclusion recruiting team.
      The Softbank-backed mortgage lender announced in May it was going public through an SPAC and last week received $750 million in cash as part of the deal. The company is prepared to have more than $1 billion on its balance sheet.
      Garg has been involved in controversy before, as evidenced by an email he sent to staff that was obtained by Forbes.
        "You are TOO DAMN SLOW. You are a bunch of DUMB DOLPHINS... SO STOP IT. STOP IT. STOP IT RIGHT NOW. YOU ARE EMBARRASSING ME," he wrote.
        The Daily Beast reported in August that one of Garg's most "loyal lieutenants" received massive perks, such as millions of dollars worth of stock options that could be vested immediately, not comparable to other employees. That person was later placed on administrative leave for bullying.

        Dec. 7, 2021 "'It was callous,' says man laid off with 900 employees on Zoom call": Today I found this article by Sheena Goodyear. Interview produced by Chris Harbord on CBC news:

        Christian Chapman is still reeling after his boss fired him and about 900 of his colleagues in one fell swoop during a company Zoom call last week.

        The father of five from Allen, Texas, was busy at work facilitating training sessions for the U.S. mortgage company Better.com when he and his co-workers were sent an unexpected link to a Zoom call with CEO Vishal Garg.

        "We were all laughing, getting ready for a holiday party, and we jumped on the call, Vishal's call, and it was like the air was sucked out of the room," Chapman told As It Happens host Carol Off. 

        "It was surreal. My mind was having a hard time processing the words coming out of Vishal's mouth."

        'I come to you with not great news'

        The two minute and 33 second call was leaked on YouTube this weekend, where it's been viewed more than 900,000 times. In the video, Garg begins the meeting with: "I come to you with not great news."

        He went on to explain that the real estate market had changed, and that Better.com was laying off 15 per cent of its workforce in the name of "efficiency" and "performance."

        "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, do not want to do this. The last time I did it, I cried. This time I hope to be stronger," he said. 

        "If you're on this call, you are part of the unlucky group being laid off. Your employment here is terminated, effective immediately."

        He thanked the employees for their work, promised they would get an email from HR shortly, and ended the call.

        Shocked, Chapman immediately tried to reach out to his colleagues, but the company had already logged him out of its software and shut down his work computer remotely.

        "Before I could even process what happened, my computer went dark," he said. "And I mean it completely just shut down."

        Better.com did not respond to a request for comment from As It Happens, but Garg issued an apology on the company's website Tuesday for the way he "handled the layoffs."

        Though the company initially defended the move in statements to other media outlets, the CEO said in his apology that he "failed to show the appropriate amount of respect and appreciation" for those affected by the layoff. 

        "I own the decision to do the layoffs, but in communicating it I blundered the execution. In doing so, I embarrassed you. I realize that the way I communicated this news made a difficult situation worse. I am deeply sorry and am committed to learning from this situation and doing more to be the leader that you expect me to be," the apology reads. 

        Chapman says he didn't see it coming. Business, he said, was booming.

        The company received a $750 million US ($950 million Cdn) cash infusion last week from the Japanese company SoftBank, its key investor, as it announced it was going public. 

        On a more personal note, Chapman says he was given a promotion and raise in October, and had recently completed a one-on-one with his manager in which he received rave reviews for his work. 

        "And then just to be dismissed, I was completely — it just hurt on the inside. I don't know how to explain it. It was like I got kicked in the gut, and I didn't know what to do," he said.

        "I thought of my five kids and my wife and the conversation I needed to have with her, and how that was going to work."

        The promised HR email didn't come for several hours after the Zoom meeting, Chapman said. 

        "For 3.5 excruciating hours, we didn't get anything. We were left in the dark."

        At the two-hour mark, he left his rented workspace, drove to a Starbucks and called his wife. Christmas vacation plans and the kids' school tuition are now up in the air.

        "We agreed that we'd pull through this together, that we weren't going to tell our kids right away," Chapman said. "We don't want to create instability in them, the same instability that had been given to us."

        He says he broke the news to his kids, who range in age from five to 14, on Sunday.

        CEO reportedly disparaged workers after call 

        After the Zoom call, Fortune.com reported that Garg wrote disparaging remarks about the laid-off employees on a professional networking message board called Blind. 

        "You guys know that at least 250 of the people terminated were working an average of 2 hours a day while clocking in 8 hours+ a day in the payroll system? They were stealing from you and stealing from our customers who pay the bills that pay our bills. Get educated," he reportedly wrote, using the username "uneducated."

        The website is anonymous, but Garg confirmed to Fortune that he made the comments, and stood by them, saying: "I think they could have been phrased differently, but honestly the sentiment is there."

        Chapman, meanwhile, is trying to move on with his life and his career, but he says he's still stunned by what happened. He says he's been laid off twice before, but never like that. 

        "It was callous. It was cold. It was premeditated, I mean, for everything just to shut down like that," he said. 

        "I've been in the mortgage industry for 20 years and it blew me away. I've never seen a layoff handled that way."

        'It was callous,' says man laid off with 900 employees on Zoom call  | CBC Radio

        There are 489 comments:


        An example of good communication inasmuch as everyone got the same message at the same time.

        It comes to show that "timing is everything". I do not see anything wrong with the way the layoff was announced. Working in technology in the crazy 2000s, I have been laid off more than once. In fact, I hate when they pretend to care or bring shrinks to help you out.

        Reply to @Andi Valachi: There is something called finesse. Everything in this lay off video template is wrong. They don't need to pretend they care, however, they do need to show professionalism, which is something that the "CEO" didn't show at all. That person even has to read from a cheatsheet of his lines. Execrable!

        They didn't even have a decency to lay him off in the real world? Wow

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