Better.com, the digital mortgage lender that made headlines last year for sacking hundreds of employees over a Zoom call, is now conducting its fourth round of layoffs. In just 8 months, the firm laid off thousands of employees and fired several senior executives.
Apparently, a list of names of employees to be fired on Friday (August 26) was leaked on Tuesday, August 23. better.com Plan to take action three days in advance.
There’s still no clarity on the exact number, but according to company sources “at least 250 or more” are to be closed this time and “all will be from the US.” Sources also claimed that the company is “going for higher corporate salaries.”
About layoffs, reported by Better.com techcrunch“We are making prudent decisions to accommodate market dynamics so that we can continue to serve our customers over the long term.”
In addition, the company also introduced a new Leave of Absence (LOA) policy according to which the number of leave team members has come down significantly. Better.com explained that the move was designed to “protect” the company and be “smart” about its future, adding, “We’ve taken a look at our policies on where we spend more.” and have decided to reduce the sectors to do better. Align with industry standards.”
Former employee to sue Better.com
Meanwhile, a former Better.com employee is suing the company and its chief executive, Vishal GargAlleged that he made misleading statements to investors about the financial prospects and performance of the digital mortgage firm.
Sarah Pierce, a former executive vice president for sales and operations at the SoftBank-backed company, claimed in her lawsuit that Garg misrepresented Better.com’s statements in order to ensure that investors could not return due to their financial situation. Go ahead with the SPAC merger instead of taking it.
Better.com plans to go public through a merger with Aurora Acquisition Corp., a special purpose acquisition company (SPAC), in a deal that was valued at $7.7 billion agreed last year and has not yet closed. SPAC deals were among the hottest investment trends during the pandemic as early-stage companies looked to go public.
Founded in 2016 and headquartered in New York, Better.com provides mortgage and insurance products to homeowners through its online platform.
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