The mortgage company that received backlash for laying off thousands of employees on a Zoom call last year has issued a third round of “substantial” layoffs, according to an employee memo.
The company is trimming positions because of the declining mortgage landscape, read the memo signed by Richard Benson-Armer, the chief people, performance, and culture officer of Better Mortgage.
“As the mortgage environment in which we operate continues to indicate further declines ahead, we have to do more to ensure Better is appropriately positioned, financially and operationally, to navigate this changing environment,” Benson-Armer said. “It is through this that we will continue to work to further position Better on its pathway to profitability. With this in mind, we have made the difficult decision to make another substantial cut to our production workforce in the United States.”
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The company received backlash last December for eliminating approximately 900 jobs ahead of the holidays. In March 2021, the company cut 3,000 positions, including roles belonging to expectant parents. The number of layoffs that occurred Wednesday has not been disclosed, though a source told Fast Company roughly 1,000 people lost their jobs.
Employees who were laid off in March received 60 to 80 working days of pay, plus three months of health insurance. The same offer has been extended to those laid off Wednesday. All three rounds of layoffs came with no warning, the report said.
“We are working hard to ensure that any employees affected hear directly from the company first in a personal, one-to-one meeting regarding any decisions and the significant steps the company will be taking to support those affected,” Better told the outlet.
The company lost $100 million in the quarter ending in December 2021, leading to the layoffs and other cost-reducing measures, CEO Vishal Garg said. The company announced it was going public in May and received $750 million as part of the deal.
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December’s elimination included members of the diversity, equity, and inclusion recruiting team, according to CNN. People in sales, operations, and Better Real Estate were among those who lost their jobs Wednesday.
Representatives for Better.com did not respond to the Washington Examiner’s request for comment.
