Vishal Garg has been removed by the board of directors as CEO of Better Home & Finance Holding Company after more than five years as a face of one of the most controversial corporate layoffs.
Why was Garg removed as CEO by the board, and what made it so unanimous? Garg's leadership style, decision-making ability, temperament, and credibility were all questioned by the board. They decided that the business needed to change course because the company was still losing money under Garg as a leader.
The layoffs came just weeks before Christmas, and the public, workers, business leaders, and consumers were quick to criticise the way in which it was done and what they felt was insensitive and not compassionate in light of the economic uncertainty posed by the COVID-19 pandemic at that time.
The reaction was intense, and the repercussions on Better.com’s reputation were profound. Many senior management left the company after the layoffs, and the reputation of Better.com was turned around. Garg later apologised for not warning employees about the layoffs and for making mistakes in his communication with employees, and the controversy never went away and continued to rage on for years.
Moreover, Better.com also faced a number of business problems. According to estimates, since 2022, the company has been at a net loss of $1.5 billion. At the same time, its stock value had dropped by more than 90%, with investors uncertain of the company’s performance and prospects. Financial troubles, low investor confidence, and leadership issues made the board ask for changes at the top.
Daniel Lewis has been appointed interim CEO and is now in his element in the company’s image. The company brought Lewis to Better.com just after the Zoom layoffs, and Better.com began working to get back its reputation. He defended the company and gradually won Garg's trust. Lewis was in charge of the company’s management and was appointed to the board of directors.
Lewis was the one who convinced other directors that leadership changes were necessary long after he came on board. In a short time, board members supported Garg being dismissed and new leadership brought in to help navigate the company through its ongoing problems.
But that is far from the end of the story. Garg has challenged the board’s decision and has hired top-level legal counsel to fight the removal. He is pursuing legal action for his firm and the company he founded. Garg even offered to pay himself one dollar a year for staying in the company until it is profitable, still committed to Better.com’s future.
The managerial revolving door. As Better.com was a new startup, the company attracted a lot of investor interest and was a disruptive force in the online mortgage business. How will Daniel Lewis stabilize the company and restore confidence?
And for many, the development is a reminder of just how quickly business fortunes can turn. The executive who has been in the news for firing hundreds of workers on a single video call has been removed by the board responsible for the company’s future.
