The company entered the UK mortgage market in July after acquiring broker firm Trussle for an undisclosed sum.
On 1 December, Garg gathered employees for the video call to let them know that 15 per cent of the workforce would be laid off in what he said was a “really challenging decision to make”.
He then revealed that the decision affected everyone who was on the call and their termination would be effective immediately.
Garg said the firings were due to “the market, efficiency and performances and productivity”.
However, the day before employees were let go, Better.com received a $750m (£565m) investment from two of its backers, Aurora Acquisition Corporation and SoftBank and earlier in the year, revealed the company would be going public on the US stock market.
Trussle also laid out plans to ramp up employment at the firm, announcing it would aim to hire 1,000 brokers next year.
On the call, Garg said: “This isn’t news that you’re going to want to hear but ultimately it was my decision and I wanted you to hear it from me. It’s been a really, really challenging decision to make.
“This is the second time in my career that I’m doing this and I do not want to do this. The last time I did it I cried. This time I hope to be stronger. But we are laying off about 15 per cent of the company.”
“If you’re on this call you are part of the unlucky group that is being laid off. Your employment here is terminated. Effective immediately,” he added.
Better describes itself as an alternative digital mortgage provider which aims to make homeownership more affordable and accessible through its incentive of no origination fees, no commission and transparent pricing.
It launched in 2016 and completed $1bn (£721m) in lending by 2018. Better also offers home insurance and estate agency services.
Through the acquisition, Better plans to introduce Trussle to estate agencies, property developers and financial services companies and invest in its customer origination.
Mortgage Solutions has contacted both Trussle and Better.com to ask if this would affect the UK brokerage. Neither company has responded.
