Better.com, a digital mortgage lender, has laid off a large number of employees twice in the past four months. Not once, but twice, the corporation failed miserably at mass layoffs.
First, on December 1, Better.com used a Zoom video chat to lay off roughly 900 employees, which went viral. During a global epidemic, it wasn’t the only corporation to lay off workers due to Zoom. However, many people were angered by the way it was handled.
Vishal Garg, the company’s CEO and co-founder, was widely panned for his cold and callous demeanour. He then added salt to the injury by accusing affected employees of “stealing” from their coworkers and clients by being unproductive a few days later.
Furthermore, CFO Kevin Ryan had just sent an email to staff the day before, stating that the company would have $1 billion on its balance sheet by the end of the week. Employees described how he “led by fear” in the weeks following the layoffs, and several senior executives and two board members resigned.
Then, on March 8, the company laid off an estimated 3,000 of its remaining 8,000 employees in the U.S. and India and “accidentally rolled out the severance pay slips too early.” Many employees said they first learned when they saw a severance cheque in their Workday accounts, the company’s payroll software.
Looking back on these two layoffs, it’s evident that one thing is certain: Better.com should have managed both occurrences more effectively. Obviously, layoffs are difficult in any situation, but they are occasionally necessary, especially in times like these, when businesses are once again considering layoffs as a method to reduce cash usage and attract fresh funding. We chatted with three human resources specialists who shared tips on how to make a layoff less unpleasant for everyone concerned.
Better.com’s handling of the problem, according to Lisa Calick, director of HR Advisory Services at Wiss & Company, “is an example to all firms of what not to do.” “Involuntary terminations should always be communicated with sensitivity, respect, and understanding.”
