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In December 2021, the digital mortgage lender company better.com fired more than 4,000 employees on a Zoom call. Now a new online report suggests that the fintech startup is still struggling and has laid off its real estate team on June 7.
According to a report by TechCrunch, Better.com is said to be shifting from an in-house agent model to a partnership agent model. One of the impacted employees told TechCrunch that the agents either received little or no severance. Also, the agents received a 50% salary cut in November last year.
Rumours also suggest that Better.com is planning to exit the real estate business as the market has experienced a major slowdown due to the rising mortgage interest rates. In April 2022, TechCrunch reported suspicions that the entire Better Real Estate unit might be abandoned. Sources revealed that the unit was once considered a significant focus of the company, with a substantial portion of investment funds allocated for it in 2022.
Better had openly expressed its intention to enhance its purchase experience and diversify beyond digital lending by assisting individuals in finding and buying homes. This was evident in their decision to change the company name from Better Mortgage to Simply Better. Furthermore, they were actively expanding their product suite to include value-added services like title and homeowner’s insurance, aiming to provide a comprehensive range of offerings to their customers.
Byju’s plans to lay off 1,000 employees
Meanwhile, Indian ed-tech startup Byju’s is planning to lay off around 1,000 employees. Byju’s plans to let go of additional staff to streamline operations further and reduce costs, tells sources who wished to remain anonymous. Most affected employees are part of the on-ground sales teams and were hired through third-party contractors.
Byju’s is reportedly preparing to reduce its workforce by approximately 1,000 employees, as stated in a report by The Morning Context. This decision aligns with the company’s shift in focus from rapid growth to developing a hybrid model in collaboration with Aakash. According to an anonymous source, adopting a hybrid strategy has become one of the few remaining options for online education technology companies, as selling online courses has become increasingly challenging.
According to a report by TechCrunch, Better.com is said to be shifting from an in-house agent model to a partnership agent model. One of the impacted employees told TechCrunch that the agents either received little or no severance. Also, the agents received a 50% salary cut in November last year.
Rumours also suggest that Better.com is planning to exit the real estate business as the market has experienced a major slowdown due to the rising mortgage interest rates. In April 2022, TechCrunch reported suspicions that the entire Better Real Estate unit might be abandoned. Sources revealed that the unit was once considered a significant focus of the company, with a substantial portion of investment funds allocated for it in 2022.
Better had openly expressed its intention to enhance its purchase experience and diversify beyond digital lending by assisting individuals in finding and buying homes. This was evident in their decision to change the company name from Better Mortgage to Simply Better. Furthermore, they were actively expanding their product suite to include value-added services like title and homeowner’s insurance, aiming to provide a comprehensive range of offerings to their customers.
Byju’s plans to lay off 1,000 employees
Meanwhile, Indian ed-tech startup Byju’s is planning to lay off around 1,000 employees. Byju’s plans to let go of additional staff to streamline operations further and reduce costs, tells sources who wished to remain anonymous. Most affected employees are part of the on-ground sales teams and were hired through third-party contractors.
Byju’s is reportedly preparing to reduce its workforce by approximately 1,000 employees, as stated in a report by The Morning Context. This decision aligns with the company’s shift in focus from rapid growth to developing a hybrid model in collaboration with Aakash. According to an anonymous source, adopting a hybrid strategy has become one of the few remaining options for online education technology companies, as selling online courses has become increasingly challenging.
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