The encyclopedia · People & Management · People decision · 2021
Better.com CEO fired 900 employees on a Zoom call without warning
CEO Vishal Garg hit 'end meeting' after telling staff they were fired, leaving them staring at black screens.
Better.com · 2021-01-25
What happened
On January 25, 2021, Better.com CEO Vishal Garg called an all-hands Zoom meeting with approximately 1,000 employees. He began by announcing that the company would be cutting its workforce by roughly 9%, affecting about 900 staff members. The announcement was abrupt, with no prior notice to the affected individuals and no HR support structure in place for the transition.
Novak then asked if anyone had questions or concerns. When several employees attempted to speak, he muted their microphones. After a brief period of chaos where employees realized they were being terminated in real-time, Novak ended the meeting abruptly. Many employees were left staring at black screens or frozen video feeds, unable to access their work emails or internal systems immediately.
The incident sparked immediate backlash on social media, with former employees sharing screenshots and videos of the call. It highlighted severe failures in corporate crisis management and basic human decency during organizational restructuring.
Why it happened
- Novak prioritized speed and cost-cutting over humane process, treating employees as disposable line items rather than people.
- Lack of preparedness: No HR teams were available to handle severance discussions or answer questions in real-time.
- Poor communication strategy: Announcing mass layoffs via a single broadcast call without individual notifications is widely considered unethical and legally risky.
- Cultural disconnect: The CEO's dismissive behavior (muting questions) reflected a broader toxic culture within the rapidly scaling startup.
The lesson
How you fire people matters as much as why. Brutal efficiency destroys trust, brand value, and morale far more than the cost savings justify.
Aftermath
The incident went viral, damaging Better.com's employer brand significantly. Vishal Garg faced intense public scrutiny and criticism from business leaders. While Better.com continued operations, the event became a cautionary tale in HR circles about the importance of dignity in termination processes.
Sources
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