US-based digital mortgage company Better.com has reportedly started mass layoffs. The company, according to The New York Times, is planning to layoff 3,000 employees or one-third of its total workforce (9000). On March 8,the company served severance cheques 3,000 employess on the company’s internal payroll app without any prior notice.
“We must take the difficult step of streamlining our operations further and reducing our workforce in both the US and India in a substantial way,” Interim President Kevin Ryan said in a letter to employees and posted to its website Tuesday.
Ryan said in the letter that affected employees would be notified of their termination in the coming days by a member of the company’s leadership team. He said affected employees will get 60 to 80 days of severance and three months of COBRA health care coverage.
The development comes three months after Better.com co-founder and CEo Vishal Garg was in the eye of storm for laying off 900 employees via a Zoom call. Better had received $750 million in funding from SoftBank and Aurora Acquisition the day before the December layoffs.
Garg issued an apology a few days later in the wake of mass resignations from the company’s top management, including the vice president of communications, the head of public relations and the head of marketing. “I failed to show the appropriate amount of respect and appreciation for the individuals who were affected and for their contributions to Better. I own the decision to do the layoffs, but in communicating it I blundered the execution. In doing so, I embarrassed you,” he said in a letter to employees that was leaked on Blind, an anonymous community app for the workplace.