lays off 900 workers a day after capital injection

Just a day after the amended online lender amended a merger agreement to put cash on your balance sheet in order to expand, it laid off around 900 workers, or 9% of its existing workforce.

The staff reductions involved workers in the United States and India, but the location breakdown was not disclosed. However, the majority of those who lost their jobs were from production staff focused on refinancing, as start-ups for this purpose are expected to decline in 2022.

Better also has non-mortgage staff who provide real estate sales, title and settlement, and home insurance services, with a focus on improving the home buying experience.

“A stronghold balance sheet and a small, concentrated workforce have put us together to go on the offensive in entering a rapidly changing home ownership market,” said Kevin Ryan, its CFO, in a press release.

At the start of the year, the company had around 5,000 employees. According to the prospectus of the PSPC transaction, Better had 5,000 employees in the United States and another 3,100 in India as of June 30. About 600 people work in technology and product development, almost all located in the United States. About 5,700 people work in production roles. , approximately 3,300 in the United States and approximately 2,400 in India.

Just before the layoffs, which took effect immediately, Better had around 10,000 employees.

Better just restructured its merger deal with Aurora Acquisition to immediately add $ 750 million in cash to its balance sheet, via a convertible note, with the option of adding an additional $ 750 million after the transaction closes. With this new funding, the company will have $ 1 billion in cash and cash equivalents on its balance sheet.

In a press release issued after the market closed on November 30, Better CEO Vishal Garg explained how the company has doubled its market share in the past 12 months as its competition either remained in place or had started to fall back. “Now is exactly the time for us to lean and accelerate the innovation of our customer-centric products, and grow our B2B business, which we believe offers us greater defense in a more mortgage market. difficult, ”he said.

Garg also spoke of other mortgage lenders scaling back their automation and vertical integration efforts. Indeed, the new financing gives Better the opportunity to develop its activity.

In the 2021 National Mortgage News Main producers survey, Better had 10 loan officers ranked among the 18 most prolific initiators last year. Unlike many other companies in the mortgage industry, its sales staff are not commissioned.

The layoffs from Better followed the announcement of a significant reduction in staff at Interfirst.