Indian CEO who brutally fired 900 employees on video call loses job in shocking twist
Garg's exit comes after a turbulent few years at Better. The company enjoyed a huge valuation during the pandemic, when mortgage refinancing was booming and interest rates had fallen below 3 per cent. Better was once valued at around $8 billion.
Garg's exit comes after a turbulent few years at Better. The company also faced several controversies during Garg's tenure.
Despite that history, Garg believes he was finally turning Better around. He says the company began using artificial intelligence to speed up mortgage processing, replacing work that could previously take dozens of employees several days.
What Happened
Intuit, Coinbase and OpenAI partnered with Better this year to support their mortgage services, according to Garg. He also says the company's loan volume has tripled and that it is now close to profitability.
The company enjoyed a huge valuation during the pandemic, when mortgage refinancing was booming and interest rates had fallen below 3 per cent.
Better was once valued at around $8 billion.
As mortgage rates climbed towards 7 per cent, refinancing activity collapsed and Better's business suffered.
Key Details
But Lewis and the board apparently saw things differently. A week later, Garg was removed as CEO and Lewis was named his replacement.
Its annual sales plunged from around $1.5 billion in 2021 to just $70 million in 2023.
The company's market value has since fallen to roughly $300 million.
His 2021 Zoom layoffs became a major embarrassment, forcing him to take a leave of absence.
Why It Matters
Garg believes Lewis had been positioning himself for the role all along. Garg is now fighting to get his job back.
Better later faced a whistleblower lawsuit, an investigation by the US Securities and Exchange Commission and a disastrous 2023 SPAC merger that sent its stock plunging 93 per cent.
Better also partnered with Neo Home Loans, which Garg claims doubled productivity and reduced loan origination costs by 50 per cent.
What Reports Say
Coverage of the story so far points to:
Garg has asked the board to reinstate him and says he is willing to work for just $1 a year until Better becomes profitable.
Continued reporting by India Today as more details emerge
