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Vishal Garg, who made layoffs via Zoom, returns as Better CEO

Vishal Garg,


Vishal Garg, founder and CEO of the digital mortgage lender Better, will continue as CEO, according to an internal memo received by CNBC.

The move comes less than two months after Garg came under fire for firing about 900 employees, or 9% of its workforce, via Zoom on December 1st. He subsequently resigned at the request of Better's board of directors and CFO Kevin Ryan took over as interim CEO.

"As you know, Better's CEO Vishal Garg has taken a break from his full-time job to reflect on his leadership, reconnect with the values ​​that make Better great, and work closely with an executive coach," the memo reads. was attributed. to the company's board of directors.

"Vishal will resume his full-time duties as CEO. We are confident in Vishal and in the changes he is committed to making to provide the type of leadership, focus and vision that Better needs at this crucial time."

The memo also reveals that board members Raj Date and Dinesh Chopra have resigned, though "not because of any disagreement with Better," it reads.

At the time of the layoffs, Garg mentioned market efficiency, performance and productivity as the reason for the layoffs. Fortune later reported that Garg accused employees of "stealing" from their colleagues and customers by being unproductive and only working two hours a day.

In May, Better announced it would be listed by merging with Aurora Acquisition Corp., valuing the company at $ 7.7 billion in a deal that included a $ 1.5 billion private investment in public equity (PIPE) - event led by SoftBank.

Around the same time as the layoffs, Better received a cash injection from Aurora and SoftBank, which changed the terms of their financing agreement to give the company $ 750 million, half of the PIPE obligation, immediately instead of waiting for the blank check agreement to close.

Since then, several businesses have reported that Better has delayed its listing plans in the middle of the ongoing investigation.


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