Under-pressure online mortgage lender Better.com has reportedly carried out a fourth wave of layoffs, affecting all departments.
A file with the list of employees affected by the layoff scheduled for Friday, August 26, got leaked internally on Tuesday, August 23, sources told TechCrunch.
Those staffers left immediately three days before, as per a Blind post and from details given by some of the terminated employees.
It is still unknown the number of people who will be laid off in this latest reduction.
But one impacted worker projected that “at least 250 or more” would be hit, and that they “would all be from the US side.”
Another insider states the organization appears to be “going for higher corporate salaries.”
A company spokesperson said: “We’re making prudent decisions to adjust to market dynamics so that we can continue to serve our customers for the long-term.”
Furthermore, the firm is supposed to have adopted a new leave of absence (LOA) policy that “dramatically” limits the amount of leave given to team members.
The new policy went into force immediately and for those on paid leave, the updated policies go into effect from October 1 as per documents shared with TechCrunch.
A company spokesperson said that the action was taken to “protect” the firm and “be smart” about its future.
The spokesperson added: “We’ve taken a look at our policies where we’re overspending and have decided to reduce areas to better align with industry standards.”
Within nine months, the company has laid off thousands of employees, seen multiple senior executives resign, and deferred a SPAC that it has claimed recently of still working toward.
The company also recently announced a series of new senior hiring, all of which were on the high payroll.
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One source told TechCrunch that the company’s “burn rate is so high, there will probably not be enough to operate past December without additional funding.”
Better, like other home-buying firms, has been hit by rising mortgage interest rates and a harsh macro environment.
Source: Yahoo! News