The online mortgage lender Better.com is reportedly planning its second round of layoffs affecting over 3,000 employees (in both the US and India) this week.
The layoffs were initially planned for March 8, 2022, but then moved to March 9, 2022, when the news leaked. An employee who did not want to be identified told TechCrunch that the company accidentally rolled out the severance payslips too early.
Cash severance payments
Following the transfer of severance money earlier by mistake, Chief Financial Officer (CFO) Kevin Ryan wrote an email to the employees saying the entire industry is facing a dramatic drop. Ryan added that the company had to "adjust to volatility in the interest rate environment and refinancing market."
"Unfortunately, that means we must take the difficult step of streamlining our operations further and reducing our workforce in both the US and India in a substantial way," Ryan wrote.
He added, "the affected employees will be eligible for a minimum of 60 working days, and as much as 80 working days, of cash severance payments." The majority of impacted employees are said to be in sales and operations.
Better.com's December 2021 layoffs firing 900 employees through a Zoom call went viral on social media. Indian-origin CEO Vishal Garg later apologised for his manner of handling the layoffs and took his time off from the company. In January 2022, the company's board announced Garg's return to employees through an email.