Better.com to fire over 250 employees in 4th round of layoff

Apparently, a list of employee names who were to be fired on Friday (August 26) was leaked on Tuesday, August 23. This led Better.com to take action three days before it was planned. 

There is still no clarity of the exact number, but as per the company sources “at least 250 or more” are to be laid off this time and “will all be from the U.S. side.” Sources also claimed company seemed to be “going for higher corporate salaries.”

Regarding the layoffs, Better.com told TechCrunch, “We’re making prudent decisions to adjust to market dynamics so that we can continue to serve our customers for the long-term.”

Moreover, the company also introduced a new leave of absence (LOA) policy according to which the number of leave team members are eligible has been drastically reduced. Better.com explained the move was designed to “protect” the company and “be smart” about its future, and further added, “We’ve taken a look at our policies where we’re overspending and have decided to reduce areas to better align with industry standards.”

Former employee to sue Better.com

Meanwhile, a former Better.com employee is suing the company and its chief executive, Vishal Garg, alleging they provided misleading statements to investors about the digital mortgage firm’s financial prospects and performance.

Sarah Pierce, a former executive vice-president for sales and operations at the SoftBank-backed company, claimed in her lawsuit that Garg misrepresented Better.com’s statements to ensure investors go through with a SPAC merger instead of withdrawing due to its financial condition.

Better.com’s plan to go public through a merger with a special-purpose acquisition company (SPAC) Aurora Acquisition Corp, in a deal that valued it at $7.7 billion, was agreed to last year and has yet to close. SPAC deals were among the hottest investment trends during the pandemic as early-stage companies looked to go public.

Founded in 2016 and headquartered in New York, Better.com offers mortgage and insurance products to homeowners through its online platform.

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