Indian-American entrepreneur Vishal Garg, who became widely known after firing 900 employees during a three-minute Zoom call just before Christmas in 2021, has been removed as chief executive of Better Home & Finance.
Garg was ousted in early August after Daniel Lewis, a hedge-fund manager who had joined Better's board just a week earlier, was appointed interim CEO. Better's board said directors other than Garg had unanimously voted to terminate him, citing concerns over his “judgment, temperament and credibility.”
The company also pointed to losses of more than $1.5 billion since 2022 and a decline of over 90% in its stock price during Garg's tenure.
Vishal Garg's rise and fall at Better
Garg founded Better in 2014 after becoming frustrated with the traditional mortgage process. Born in India and raised in New York, he graduated from Stuyvesant High School and New York University's Stern School of Business.
Before founding Better, Garg co-founded online student lender MyRichUncle. However, it was his treatment of employees that brought him international attention.
In December 2021, Garg told more than 900 employees during a Zoom call that they were being laid off, informing them that their employment was terminated “effective immediately.” He later took a leave of absence following the backlash before eventually returning as CEO.
Garg says Better was nearing a turnaround
Garg has acknowledged that the 2021 layoffs severely damaged Better's reputation. However, he maintains that the company was close to a turnaround when he was removed.
“We’re winning. We’ve tripled loan volume. We’re close to profitability,” he said in a CNN interview, describing Better as being at the “5-yard line” after rebuilding the business.
Garg also said he felt “hoodwinked” by Lewis, alleging that the hedge-fund manager had gained the board's confidence before helping remove him.
“He said he liked the company’s strategy. He praised us on X and used that to get on our board and win our confidences.”
Better's valuation plunges
Better, which was valued at around $8 billion during the pandemic-era refinancing boom, now has a market value of roughly $300 million.
The company's annual sales fell from $1.5 billion in 2021 to $70 million in 2023. Garg, however, said Better's 2026 revenue is on track to reach $200 million.
The company has increasingly turned to artificial intelligence to automate mortgage processing and has also expanded into home-equity lending.
Garg fights to return as CEO
Garg is challenging his removal and has hired a prominent law firm in an effort to regain the CEO position. He has also offered to work for $1 a year until Better returns to profitability.
Garg said he has support from shareholders who hold shares with special voting powers.
“It’s an acknowledgment that I’ve been doing this for 10 years, but execution hasn’t been perfect,” he told CNN.
“I hope it gets resolved. I think the future still remains very bright for Better.”
