After going viral for mercilessly firing 900 employees over a Zoom call, Vishal Garg, the CEO and founder of Better Home and Finance, is now in the news a second time over employment changes, but this time the story centers on his own firing. For the most part, the story is gaining traction as a sign of karma coming in clutch, proving to many that what goes around comes around. On a deeper level, however, the incident gives us much to think about in terms of second chances, trust in leadership, and what it really means to lose a job in the modern world.
The Story Then: Better Home and Finance CEO Who Fired 900 Employees Over Zoom
Everyone hopes for their business to go viral someday, bringing in customers and clients in droves to capitalize on the services on offer, but not evey business is prepared for sour sentiments. Some say that all press is good press, emphasizing the importance of getting the public talking about the brand, but in practice, this can be a tricky adage to live by. Vishal Garg, now the former CEO of Better Home and Finance, first went viral in 2021 over the firing of 900 of his employees over a Zoom call shortly before the holiday season.
The announcement reportedly lasted for about three minutes, during which the “unlucky group” of workers found that they were being let go, “effective immediately.” The call was leaked online, and the organization received backlash almost at once for multiple reasons: the decision to fire employees before Christmas, the nature of the Zoom call, and the $750m cash infusion it was set to receive from its SPAC backers. Most of the attention the company had drawn thus far leaned towards the negative, with Garg sporting a history of allegations of financial mismanagement and a reputation for speaking poorly of his employees.
The Story Now: Vishal Garg Wants His Job Back
More recently, the CEO is going viral for his own firing, with reports suggesting that he is unhappy with the way the organization went about replacing him. The CEO position was quickly filled by hedge fund manager Daniel Lewis, who had only joined the board a week ago. The new leader has now been accused of joining the organization under false pretenses, convincing the company to oust the former CEO within the week. “He hoodwinked me,” Garg said in a statement to CNN, adding, “He said he liked the company’s strategy. He praised us on X and used that to get on our board and win our confidence.”
The company has been operating on rocky grounds for years now, with reports suggesting that Better dropped from an $8 billion valuation during the pandemic to now being valued at $300 million. The former CEO of Better has since suggested that he was just set to turn the business around with a new AI initiative that had garnered considerable interest, and he was determined to get his job back to continue the work that was abruptly interrupted.
What Happens Next: The Former CEO Has a Plan
Garg remains on the board of the organization and reportedly has the backing of multiple investors who are in favor of handing him his job back. The mini-coup has already proven costly for the business, with stocks falling 45% since Garg’s fall from grace. In a letter to the board, the former CEO expressed his determination to return as the head of the organization for $1 pay until Better becomes profitable.
Following the achievement of profitability, he intends to step aside to the role of Chairman or Chief Product and Innovation Officer, allowing a newly appointed candidate to take on the CEO role. Garg has also committed to investing $5M of his own funds as part of the plan, laying out other goals for the organization to achieve in the coming months.
The letter also highlighted some of the areas of growth the business has seen since 2024, and explanations for some of its current financial numbers. The former CEO is hoping that the board will voluntarily offer him the job once more, but if they fail to do so, he is also determined to pursue further action available to him and other shareholders who are aligned with him.
Our Takeaway: Falling Faith in Leadership Is Often Hard to Recover
The viral firing has elicited considerable attention online, with most coverage of the story linking back to when the CEO himself fired 900 of his employees on Zoom. While the act may not be his crowning achievement or even his most egregious one, this does serve as a reminder that leaders are often remembered for their errors, especially ones that garner such public attention. Some appear surprised that the CEO lasted as long as he did in his position, but the willingness of the board to replace him and the public to demonize him does bring us back to one of his biggest faux pas made public.
The CEO wasn’t the first to fire employees during the holiday season and likely won’t be the last, which makes the emphasis on this particular incident a surprising one. The fate of his job remains unknown, and Garg may well convince the board that he has the best interests of the organization in mind, but employees may not be as willing to move on. A lack of trust in leaders can often be hard to overcome without dedicated efforts toward making amends.
CEOs may be celebrated among shareholders, but they rarely enjoy the goodwill of the workforce unless they provide employees with good reason to trust in their ability to lead and guarantee joint success. First impressions don’t last forever, but they can sometimes turn into lasting impressions, with audiences and employees unwilling to see beyond the opinion formed thus far.
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