Multiple sources inform TechCrunch that Better.com, a digital mortgage lender, is currently conducting its fourth round.
All departments are affected by the latest cuts.
Better.com is not well-known for its shrewd approach to letting employees go . This week, however, the company lived up to its reputation. TechCrunch was told by sources that an internal list with names of people who were to be laid off in a Friday, August 26 layoff was leaked on Tuesday, August 23. According to a blind post, this led to the employees being “immediately terminated”, three days earlier than expected. Some of those workers also provided information.
It is not clear at the moment how many people will be laid off in the latest round. However, one worker estimates that there would be “at most 250” or more and that they all come from the U.S. Another source stated that the company was “going for higher corporate wages.”
TechCrunch reached Out to Better.com about the layoffs. A spokesperson stated that they were making prudent decisions to adapt to market dynamics in order to continue to serve customers long-term.
The company also reportedly has a new leave-of-absence (LOA) policy, which “dramatically” decreases the number of leave options available to team members. According to TechCrunch documents, the new policy became effective immediately. These documents also indicate that the new policies will become effective for employees already on paid leave as of October 1.
TechCrunch was told by a spokesperson that the move was made to “protect” the company as well as “be smart about its future.” He added: “We have taken a look at the policies we are using excessively and decided to reduce them to better align with industry standards.”
The company has laid off thousands of workers in less than nine months. Many senior executives have resigned. It also delayed a SPAC, which it said was still working towards.
Better.com recently announced a series of new executive hires which were no doubt expensive for the company. TechCrunch was told by a source that the company’s burn rate is so high that it will likely not have enough funding to continue operations beyond December.
Better and other companies catering to home buyers have been hard hit by increased mortgage interest rates, challenging macro environment, and the questionable acts of its CEO, Vishal Garg. Reali, a real estate tech company, announced today that it was closing down operations and laying off its employees after raising $100 million last year.