“If you’re on this call, you’re part of the unlucky group that’s being fired,” Garg said on the call, a recording of which was viewed by CNN Business. “Your employment here is terminated with immediate effect. ”
He went on to say that employees can expect an HR email detailing benefits and severance pay.
“Having to lay off people is heartbreaking, especially at this time of year,” CFO Kevin Ryan said in a statement to CNN Business. “However, a fortress track record and a small, concentrated workforce have put us together to go on the offensive by entering a radically changing home ownership market. ”
Garg cited market efficiency, performance and productivity as the reason for the layoffs. Forbes later reported that Garg accused employees of “robbing” colleagues and clients by being unproductive and working only two hours a day.
Among those fired was the Diversity, Equity and Inclusion Recruitment Team.
The Softbank-backed mortgage lender announced in May that it was going public through a PSPC and last week received $ 750 million in cash as part of the deal. The company is poised to have over $ 1 billion on its balance sheet.
Garg has been embroiled in controversy before, as evidenced by an email he sent to staff and obtained by Forbes.
“You are TOO SLOWLY. You’re a bunch of DUMB DOLPHINS… SO STOP IT. STOP IT. STOP IT NOW. YOU EMBRACE ME, ”he wrote.
The Daily Beast reported in August that one of Garg’s “most loyal lieutenants” had received considerable benefits, such as millions of dollars in stock options that could be vested immediately, not comparable to other employees. This person was then put on administrative leave for intimidation.