CEO who fired 900 employees on a Zoom call loses top job at Better

Vishal Garg, the Indian-American entrepreneur who drew global attention in 2021 after dismissing more than 900 employees during a Zoom call, has lost his position as chief executive of Better Home & Finance and is now seeking a return to the top role.

The leadership change has quickly evolved into a public dispute. Garg has accused his successor, Daniel Lewis, of gaining the confidence of Better's leadership and board before taking control of the company. Speaking to CNN, Garg said Lewis had misrepresented his intentions before becoming chief executive.

The development comes as Better attempts to stabilise its business after years of financial challenges in the US mortgage market.

Leadership transition turns into boardroom conflict

According to statements cited by CNN, Better appointed Lewis as interim chief executive on August 3, only days after he joined the company's board.

An initial announcement described the move as a mutual decision between Garg and the board. However, the company later said directors, excluding Garg, had unanimously voted to terminate him from the chief executive role.

Better said the decision was based on concerns relating to Garg's "judgment, temperament and credibility".

Garg has strongly disputed the circumstances surrounding his removal.

“He hoodwinked me,” Garg told CNN, referring to Lewis.

According to Garg, Lewis publicly supported Better's strategy and praised the company before joining the board and subsequently becoming chief executive.

Founder says company was entering a recovery phase

Garg maintains his removal occurred as Better's business was beginning to improve following a prolonged downturn.

The company was among the high-profile beneficiaries of the pandemic-era mortgage refinancing boom and was once valued at approximately $8 billion. However, rising interest rates and a sharp decline in refinancing activity significantly affected its business.

According to Garg, Better's annual sales fell from $1.5 billion in 2021 to $70 million in 2023.

He told CNN the company is now on track to generate approximately $200 million in annual sales this year, supported by AI-powered mortgage processing technology and strategic partnerships.

Garg described the company as being close to profitability and said loan volumes had increased substantially.

“We’re winning. We’ve tripled loan volume. We’re close to profitability,” he told CNN.

Questions emerge over succession process

Lewis reportedly advised Garg for several months on improving profitability and reducing costs before joining Better's board on July 27.

Garg now believes Lewis may have been pursuing the chief executive position throughout that period.

“I suspect he always wanted to become CEO,” Garg said in remarks reported by CNN.

The dispute highlights growing tensions between the founder and the board over the company's future direction and leadership.

Garg mounts comeback effort

Despite losing the chief executive role, Garg remains a member of Better's board.

According to CNN, he has begun an active effort to regain control of the company and return as chief executive.

Key developments include:

• Garg remains on Better's board.
• He says investors have contacted him following his removal and encouraged him to return.
• He claims he holds sufficient voting support, including backing from early investors, to potentially regain control.
• He has retained prominent attorney Alex Spiro, a partner at Quinn Emanuel.
• He has formally requested reinstatement as chief executive.

Garg has also offered to work for $1 a year until Better reaches profitability, after which he says he would eventually step away from the role.

Shadow of the 2021 layoffs remains

Garg remains one of the most recognisable figures in the technology and fintech sectors because of the controversy surrounding Better's 2021 layoffs.

During a Zoom meeting that lasted only a few minutes, Garg informed more than 900 employees that their employment was being terminated. The incident generated widespread criticism and became one of the most discussed examples of pandemic-era workforce reductions.

The episode placed Better and its founder under intense public scrutiny and shaped perceptions of the company's leadership for years.

Uncertain path ahead

The latest dispute leaves Better facing another period of uncertainty as it works to rebuild its business amid changing market conditions.

For now, Lewis remains in charge as interim chief executive, while Garg continues his effort to return to the role he held for more than a decade.

“I hope it gets resolved. I think the future still remains very bright for Better,” Garg told CNN.

Whether the founder succeeds in his comeback attempt will depend on the support he can secure from investors and board members in the weeks ahead.