A CEO who made headlines after firing hundreds of employees over Zoom has been reinstated at the company after taking time off to 'reflect'.
Vishal Garg founded mortgage company Better.com in January 2016, but almost exactly six years later he was placed on leave due backlash sparked by the mass layoff which took place in December 2021.
The call took place just before Christmas, when Garg gathered approximately 900 members of staff on a Zoom call and informed them that if they were taking part, they were 'part of the unlucky group that is being laid off'.
See footage of the call below. Warning: Contains strong language.
Among those fired were the diversity, equity and inclusion recruiting team, CNN Business reports, with Garg adding: '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.'
The CEO later apologised for his actions, but he was placed on leave as Better’s general counsel described the Zoom call as 'regrettable'.
In an email to employees at the time, the board wrote: 'We have much work to do and we hope that everyone can refocus on our customer and support each other to continue to build a great company and a company we can all be proud of.'
The Zoom call came after a 2020 report by Forbes revealed Garg’s history of poor treatment of employees, including referring to them as 'dumb dolphins' in one email, but in an email sent to employees this week, Better's board of directors announced the return of the CEO.
The board explained it had met with Garg multiple times since the Zoom call took place, and that it was confident Garg could continue to lead the company after he had time to consider his role.
In the email, cited by Forbes, the board wrote: 'As you know, Better’s CEO Vishal Garg has been taking a break from his full-time duties to reflect on his leadership, reconnect with the values that make Better great and work closely with an executive coach.'
It went on to say that after engaging in discussions with Garg, 'direct input from the independent culture review, and the announcement of the organizational changes above, Vishal will be resuming his full-time duties as CEO.'
According to Tech Crunch, Better also plans to implement a 'company-wide training program on ensuring a respectful workplace' following the layoffs.
The return of Garg comes as his company reportedly plans to go public in a SPAC deal at a valuation of $6.9 billion.
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Emily Brown