Better.com to cut-off 4,000 of its workforce

Better.com is once again set to lay-off its employees. According to people acquainted with the company's internal operations, Better.com is planning to lay off about half of its 8,000-strong workforce this week.

The latest round of layoffs was first reported by TechCrunch on February 18.

The move comes little over 3 months after the New York-based firm cut off 9% of its workforce — or 900 workers — during a Zoom call that went viral, resulting in many top executives resigning and a barrage of negative press for the company.

During the COVID-19 pandemic, the company noticed a significant rise in customers looking for online choices, which was aided by low financing rates. In April 2021, SoftBank invested $500 million in the company, raising its valuation to $6 billion.

However, as interest rates have risen, the company's situation has gotten increasingly difficult. Better.com, like Peloton, grew rapidly during a period of pandemic-era that quickly altered, forcing both companies to lay off employees.

While the majority of its employees work in sales and operations, the layoff is expected to impact the whole organization, affecting around 4,000 workers immediately. Better.com employs people all across the world, including in the United States and India.

Vishal Garg's actions, which included insulting employees and investors as well as a history of verbal abuse, are likely to have played a role in the recent decision. Better.com had to move to more of a "buy" business, or one that assisted individuals with fresh loans, when the interest market changed substantially. Better.com's ability to attract new clients appears to have been harmed as a result of the damage to its reputation.

Sadly, the approximately 5,000 employees who will lose their jobs in a couple of months will be the most affected by all of this within the organization. Meanwhile, after a month-long "vacation," Garg is back at the helm of the corporation.

There's no indication on when or if the company will move forward with its SPAC, but given the situation of Better.com's business, it would be surprising if it did. We reported last year that Better.com would be valued at $6.9 billion by the SPAC. It's safe to conclude that its value has plummeted in recent years.