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This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Mortgage lender Better fires 3,000 staffs as rates rise

Mortgage lender

Better said that a ‘small number of employees’ were notified of the layoffs through severance payments that appeared in their bank accounts or Better’s internal payroll system

Online-mortgage lender Better is firing roughly 3,000 employees in the US and India as rising interest rates weigh on the volume of new loans.

The total represents about 35 per cent of the company’s workforce, according to a person familiar with the matter who asked not to be identified discussing private information.

Better eliminated approximately 9 per cent of its workforce last year, announcing the move in a video conference call. Chief Executive Officer Vishal Garg later apologised for how that round of cuts was handled and took a hiatus before returning in January. This time, the company said it would contact all of the affected workers personally.

But some workers received their severance payments before being personally informed that they were being let go. Wesley Bergeron, who was a market manager at Better based in Knoxville, Tennessee, said he noticed the deposit in his bank account at around 7:15 a.m. on Tuesday.

He presumed he was being fired based on past media coverage he’d read and conversations with others in the company about potential layoffs. He also lost computer access before formally receiving a call from the company later that afternoon.

I was one of the first people that morning to say, ‘Is this the way that we’re going to find out that we’re getting laid off, by seeing a huge lump sum of money in our accounts?’, Bergeron said in an interview. That just triggered everybody to check their accounts, Bergeron said.

Better said in an email that a ‘small number of employees’ were notified of the layoffs through severance payments that appeared in their bank accounts or Better’s internal payroll system.

This was certainly not the form of notification that we intended and stemmed from an effort to ensure that impacted employees received severance payments as quickly as possible, Better said. All staff will be eligible for severance payments, and US employees will receive extended medical benefits.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.