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

Vishal Garg, who did layoffs via Zoom, returns as Better CEO
Written by Publishing Team

Vishal Garg, Better.com

Source: Better.com

Vishal Garg, founder and CEO of digital mortgage lender Best, will remain as CEO, according to an internal memo obtained by CNBC.

The move comes less than two months after Garg was criticized for laying off nearly 900 employees, or 9% of its workforce, via Zoom on December 1. Assumed the position of interim CEO.

“As you know, the CEO of Better Vishal Garg has taken a break from his full-time duties to reflect on his leadership, reconnect with the values ​​that make for better better and work closely with an executive coach,” states the memo attributed to the company’s board of directors.

“Vishal will resume his duties full-time as CEO. We are confident in Vishal and in the changes he is making to provide the kind of leadership, focus and vision you need even better at this pivotal time.”

The memo also revealed that board members Raj Deet and Dinesh Chopra have resigned, although “not due to any disagreement with Peter’s company”.

At the time of layoffs, Garg cited market efficiency, performance and productivity as the reason behind the layoffs. Fortune magazine later reported that Garg accused employees of “stealing” from colleagues and clients by being unproductive and only working two hours a day.

In May, Better announced that it would go public through a merger with Aurora Acquisition Corp. , which valued the company at $7.7 billion in a deal that included a $1.5 billion private investment in a public equity arrangement (PIPE) led by SoftBank.

Around the same time as the layoffs, Better received an infusion of cash from Aurora and SoftBank, amending the terms of their financing agreement to provide the company with $750 million, half of PIPE’s commitment, immediately, rather than waiting for a blank check deal to close.

Since then, multiple outlets have reported that Better has delayed listing plans amid ongoing scrutiny.

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