Indian‑American entrepreneur Vishal Garg, who became a global symbol of aggressive corporate downsizing after terminating 900 staff members in a three‑minute Zoom call in December 2021, has been removed from his role as chief executive of Better Home & Finance. The board’s decision, announced in early August, installed hedge‑fund manager Daniel Lewis as interim CEO after Lewis joined the board only a week earlier.
Board’s Rationale and Financial Context
According to a statement from Better’s board, directors other than Garg voted unanimously to end his tenure. The board cited concerns about Garg’s judgment, temperament and credibility. It also highlighted the company’s deteriorating financial picture, noting losses that have exceeded $1.5 billion since 2022 and a stock price decline of more than 90 percent during his leadership.
Better Home & Finance, once valued at roughly $8 billion amid the pandemic‑driven refinancing boom, now carries a market valuation of about $300 million. Annual revenue fell sharply from $1.5 billion in 2021 to $70 million in 2023. Garg, however, projects that revenue could reach $200 million by 2026.
Founding, Growth and the 2021 Layoff Episode
Garg founded Better in 2014 after becoming frustrated with the traditional mortgage process. He was born in India, raised in New York, and is an alumnus of Stuyvesant High School and New York University’s Stern School of Business. Prior to Better, he co‑founded the online student‑lending platform MyRichUncle.
The company’s rapid expansion was punctuated by a controversial decision in December 2021. During a Zoom call held just before Christmas, Garg informed more than 900 employees that their employment was terminated effective immediately. The abrupt announcement sparked widespread criticism and led Garg to take a leave of absence before returning to his CEO duties.
Five years later, Garg acknowledges that the layoff episode severely damaged Better’s reputation. In a CNN interview he asserted that the business is now “winning,” noting that loan volume has tripled and that the firm is “close to profitability,” describing its position as being on the “5‑yard line” after a period of rebuilding.
Boardroom Shift, Legal Challenge and Future Outlook
Garg’s removal marks the latest development in an ongoing saga. He has responded by retaining a prominent law firm to contest the board’s decision and has offered to stay on a $1‑a‑year salary until the company returns to profitability. Garg claims support from shareholders who hold shares with special voting rights.
During the same interview, Garg expressed a sense of betrayal toward Lewis, stating, “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.” He also conceded that execution has not been perfect, adding, “I hope it gets resolved. I think the future still remains very bright for Better.”
Strategically, Better has increasingly turned to artificial‑intelligence tools to automate mortgage processing and has expanded its product suite to include home‑equity lending. These initiatives are intended to revive growth and restore investor confidence, although the company’s financial metrics remain under pressure.
The board’s decisive action underscores heightened scrutiny of executive conduct in the fintech sector, especially when past actions have attracted public and regulatory attention. As Better navigates the transition to interim leadership, market observers will watch closely to see whether the firm can stabilize its balance sheet, regain lost market value and deliver on the revenue targets outlined by its founder.
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