Subject category:
Human Resource Management / Organisational Behaviour
Published in:
2024
Length: 9 pages
Data source: Published sources
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Abstract
On 1st December, 2021 Vishal Garg, the CEO of Better.com announced over a Zoom call that 900 employees on the call were to be laid off immediately. For a company that had been doing exceptionally well the previous year, and had quadrupled its employee headcount, the sudden announcement was a shock. As leaked footage of the call went viral, what followed was a publicity nightmare. Reputed for his brilliant but brash style, Garg's callous attitude infuriated not just the laid off employees but even the casual observer. As more information came out in the press, the mercurial leaders' past behavior pointed to a toxic work culture. However, investors were still betting on the firm to do well. In an industry used to layoffs, why did the layoffs at Better gain so much negative attention? Could Better.com salvage its reputation and tide over the financial crisis that had made the layoffs necessary in the first place? How could the entire layoff situation be managed to minimize the negative fallout for the organization?
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Time period
The events covered by this case took place in 2021.Geographical setting
Region:
Americas
Country:
United States
Featured company
Better.com
Employees:
5001-10000
Type:
Privately held
Industry:
Finance (Mortgage)
Featured protagonist
- Vishal Garg (male), CEO
About
Abstract
On 1st December, 2021 Vishal Garg, the CEO of Better.com announced over a Zoom call that 900 employees on the call were to be laid off immediately. For a company that had been doing exceptionally well the previous year, and had quadrupled its employee headcount, the sudden announcement was a shock. As leaked footage of the call went viral, what followed was a publicity nightmare. Reputed for his brilliant but brash style, Garg's callous attitude infuriated not just the laid off employees but even the casual observer. As more information came out in the press, the mercurial leaders' past behavior pointed to a toxic work culture. However, investors were still betting on the firm to do well. In an industry used to layoffs, why did the layoffs at Better gain so much negative attention? Could Better.com salvage its reputation and tide over the financial crisis that had made the layoffs necessary in the first place? How could the entire layoff situation be managed to minimize the negative fallout for the organization?
Teaching and learning
This item is suitable for undergraduate and postgraduate courses.Settings
Time period
The events covered by this case took place in 2021.Geographical setting
Region:
Americas
Country:
United States
Featured company
Better.com
Employees:
5001-10000
Type:
Privately held
Industry:
Finance (Mortgage)
Featured protagonist
- Vishal Garg (male), CEO