It began with an invitation to a meeting by Zoom and ended with a massive layoff.
“If you are on this call, you are part of the unfortunate group that is being fired,” he told some Better.com , in the call, which was later shared on social networks.
The fact has generated questions in the country among those who consider that the company used a “harsh” and “cold” and “unethical” method to terminate its employees, especially in the run-up to Christmas.
The number of dismissed employees represents the 15% of the company’s payroll .
“The last time I did I cried about this ”, Garg told the staff on the call.
The executive explained that behind the decision was“ the performance and productivity of the staff ”and“ changed in the market. ”
He did not mention the cash infusion of US $ 750 million that Better.com received from investors last week.
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Better.com CFO Kevin Ryan told the BBC that “having to make layoffs is heartbreaking, especially in this day and age. of the year. ”
However, he added that having“ a strong balance sheet and a reduced and focused workforce ”was necessary to face the“ radically evolving homeownership market. ”
Better.com, which aims to use technology to make the process buying a home is “faster and more efficient”, is backed by the Japanese conglomerate Softbank and has a value of about US $ 6. 000 millions.
Questions
Garg’s management style has been criticized before, mainly after an email he sent to staff and that the magazine Forbes got last year.
In the email, Garb wrote to them: “THEY ARE TOO SLOW. They’re a bunch of SILLY DOLPHINS… SO STOP. STOP. STOP RIGHT NOW. THEY ARE embarrassing ME. ”
After this Monday’s dismissal, the magazine Fortune confirmed that Garg was the author of a previously written anonymous blog post accusing staff who kicked out “robbing” their colleagues and clients for being unproductive.
He further noted them of working only two hours a day, while claiming to have done it for eight or more.
Gemma Dale , Professor of Labor Law and Business Studies at Liverpool John Moores University in the UK, opined that the way it happened dismissal “is not a way to run an organization.”
A mass dismissal like this would not be legal in several countries, According to the academic.
“The fact that you can do this in the United States does not mean that you should do it,” he added.
“There are ways of doing these things that, even in difficult conditions, are empathetic and decent.”
In the expert’s opinion, decisions of this type could harm both the company and its staff, since “existing employees will see how the company treats people as a sign of how it will treat them in the future.”
“There are adequate channels through which to deal with personnel who do not meet the required standards or the amount of work and, while employers have the right to take appropriate measures, there is a correct way to do these things both morally and legally “, he considered.
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