Better.com offers voluntary separation to more workers

Better.com is offering voluntary separation to many of its corporate, product design and engineering workers after cutting more than a third of its staff in two massive layoffs over the past four months.

In an internal announcement Wednesday, the embattled lender cited “uncertain mortgage market conditions” in asking employees to leave the company. Those market conditions include declining mortgage volumes industry-wide as rates continue to rise, while sky-high home prices are suppressing affordability for homebuyers.

In the weeks between its previous cuts, Better reported a Q4 2021 net loss in the range of $167 million and $182 million, which the firm attributed to a decline in refinance activity and negative media coverage.

“Despite ongoing efforts to streamline our operations and ensure a strong path forward for the company, Better is no exception,” said Richard Benson-Armer, Better’s chief people, performance and culture officer, in an email reviewed by National Mortgage News.

The company’s latest attempt to cut costs suggests a softer approach toward departing employees after missteps in its last two widespread layoff announcements. Better admitted to a payroll snafu in March when it cut a third of its 9,000 workers, and a public relations disaster after CEO Vishal Garg fired 900 people over a Zoom call in December. The firm will give employees their final paycheck on their last day of work, which will be based on when they accept the offer, it said.

Fallout from the fateful Zoom call included subsequent resignations by company leaders, marketing and public relations staff; Garg’s five-week leave of absence through mid-January; and an internal cultural review leading the company to pursue a fresh slate of executives.

Employees who agree to leave will receive 60 working days of severance pay and health insurance coverage, Benson-Armer said. Employees under age 40 have until next Wednesday to accept the offer and leave by April 15, while staff members 40 and older were given three weeks to decide.

Other industry players have also cut staff amid declining mortgage volumes and rising rates, including Pennymac, which announced 236 permanent staff cuts in May; and South Carolina lender Movement Mortgage, which reportedly cut up to 170 employees last month.