Indian-origin CEO who fired 900 employees over Zoom loses job
What's the story
Vishal Garg, the Indian-origin CEO of Better Home & Finance, has been ousted from his position. The decision comes nearly five years after he controversially fired 900 employees during a Zoom call. Garg's successor Daniel Lewis joined Better's board on July 27 and was appointed as the new CEO just days later.
Allegations
'Betrayed' by Lewis, Garg claims
Garg has accused Lewis of betraying him by winning over the board and pushing him out.
He claims that Lewis had approached him months ago with ideas to cut costs and improve the company's finances.
Trusting him enough to give a board seat, Garg says he was shocked when Lewis persuaded other directors to remove him from his position.
Business downturn
Business has suffered in recent years
Under Garg's leadership, Better Home & Finance witnessed a massive valuation during the pandemic.
However, as mortgage rates climbed toward 7%, refinancing activity collapsed and the company's business suffered.
Its annual sales plummeted from $1.5 billion in 2021 to just $70 million in 2023. The company's market value has also fallen to some $300 million.
Legal battles
Controversies during Garg's tenure
Garg's time at Better Home & Finance has also been marred by several controversies.
His 2021 Zoom layoffs were a major embarrassment, forcing him to take a leave of absence.
The company later faced a whistleblower lawsuit, an investigation by the US Securities and Exchange Commission (SEC), and a disastrous SPAC merger in 2023 that saw its stock plummet 93%.
Revival efforts
Claims of turning company around
Despite the challenges, Garg claims he was finally turning Better Home & Finance around.
The company started using artificial intelligence to speed up mortgage processing, a task that used to take dozens of employees several days.
Better also partnered with Neo Home Loans under Garg's leadership, which he says doubled productivity and cut loan origination costs by 50%.
Legal action
Fighting to get his job back
Garg is now fighting to get his job back. He says several investors have contacted him since his removal and urged him to return.
He also has Class B shares with special voting powers and has hired high-profile lawyer Alex Spiro of Quinn Emanuel.
Garg has asked the board to reinstate him and says he is willing to work for just $1 a year until Better becomes profitable.