This time, the online mortgage start-up promises to contact laid-off employees personally
Months after its mass Zoom layoff controversy, digital mortgage lender Better is on the verge of eliminating thousands of jobs as shifting market conditions weigh on the company.
According to sources familiar with the matter, Better will ax up to 3,000 jobs in the US and India, representing roughly 35% of its total workforce.
Read more: Mortgage industry braces for huge layoffs
A verified Better employee leaked the internal layoff announcement email on Blind, an anonymous professional website. In the email, Better chief financial officer Kevin Ryan said that the decision was “driven heavily by the headwinds affecting the residential real estate market” and was not “a reflection on the personal performance of any departing team members.”
“As you know, the residential real estate market has been changing rapidly, and our entire industry is facing a dramatic drop in origination volume due to rising interest rates. It is clear - after careful, comprehensive review - that we will need to do more to ensure a strong path forward for the company and the vital work we are all doing to make homeownership more accessible for everyone.
“Unfortunately, that means 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. We have huge opportunities ahead to grow and to serve, but we must adjust to volatility in the interest rate environment and refinancing market to get there successfully. While it does not make this any easier, other companies across the mortgage industry (both old and new) have had to make similar decisions over the last two months.
“Across functions, specialists and offices, we have an incredibly talented team at Better, and losing valued colleagues is never something we wish to pursue. We do not take this decision lightly and want to let you know about the important steps we are taking in the coming days to support the transition for co-workers leaving Better. We are also taking steps to ensure seamless service for our customers.”
All laid-off employees will be contacted personally over the next few days and will receive 60-80 working days of pay as cash severance, according to the email.
“We are doing everything possible to personally reach all employees whose jobs will be eliminated to discuss this with them first,” Ryan said. “Anyone most directly affected by this announcement should receive a call over the coming days from a member of the Better leadership team. We will direct these communications to the personal phone and email we have on file. Following that call, each affected employee will receive an email to their personal email address from HR with additional details about transition support.”
Read more: CEO announces hundreds of layoffs in bizarre Zoom call
Better fired up to 15% of its workforce during a Zoom call last year. CEO Vishal Garg delivered the shocking news and was criticized for how he handled the announcement. He subsequently took some time off a break before returning in January.
