Photo Credit: LinkedIn/ Vishal Garg
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.
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.
.@betterdotcom's CEO @vishalgarg_ lays off ~900 employees right before the holidays and ahead of the company's public market debut.— Bucky with the Good Arm (@benjancewicz) December 3, 2021
The firm also got a $750 million cash infusion from its backers THIS WEEK, which include @SoftBank. pic.twitter.com/F8EfSkCRF6
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 offence 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.