Photo: Better.com
San Francisco: The embattled online mortgage lender Better.com, run by controversial Indian-origin CEO Vishal Garg, has reportedly laid off its real estate team and has shut down this unit.
The company is said to be shifting from an in-house agent model to a partnership agent model, reports TechCrunch.
The report cited an impacted employee as saying that they received “little to no severance, after getting a more than 50 percent salary cut in November in order to ‘ensure’ our jobs to come”.
It was, however, not clear how many employees were affected by the latest job cuts.
In December 2021, Garg laid off nearly 900 employees over a Zoom call that created a furore.
In total, he laid off more than 4,000 employees in the US and India.
According to the company, the uncertain mortgage market conditions created an exceedingly challenging operating environment for many companies in the industry.
In March this year, Amazon signed a deal with Better.com to allow employees to use their shares in the company toward a mortgage down payment.
Better.com launched ‘Equity Unlocker’ which allows Amazon employees to use their vested equity as collateral for a down payment for buying homes.
According to Garg, Amazon employees can finance their homes without actually selling their shares.
“Even though equity is a valuable asset, it is considered ineligible by most banks and financial institutions when calculating the necessary down payment on a home,” said Garg.
This post was last modified on June 10, 2023 1:42 pm