The CEO Who Fired 900 People on Zoom Just Before Christmas Wants His Job Back
The CEO who became infamous after firing around 900 employees on a Zoom call just before Christmas in 2021 is now fighting to get his own job back.
Vishal Garg, founder of digital mortgage company Better.com and its parent Better Home & Finance Holding Company, was removed as CEO on August 3, 2026. Now, just days after his ouster, Garg is challenging the company's board and seeking to regain an executive role.
The episode has turned a controversial layoff story from the pandemic era into a fresh founder-versus-boardroom battle. For investors, the bigger question is no longer simply whether Garg returns. It is whether Better can execute its turnaround strategy while resolving a leadership dispute that has put corporate governance back in the spotlight.
From the 2021 Zoom Layoff to the CEO's Ouster
Garg became a global business-news figure in December 2021 after telling more than 900 Better.com employees during a Zoom meeting that they were being laid off.
The timing made the decision particularly controversial: the layoffs came just before the Christmas holiday period, and the abrupt nature of the announcement triggered widespread criticism.
Garg subsequently apologised for the way the layoffs were communicated and temporarily stepped away from his duties. He returned as CEO in January 2022.
The 2021 incident became closely associated with Garg's leadership style and Better.com's rapid expansion and subsequent restructuring.
But nearly five years later, Garg is facing a very different kind of call: one involving his own position at the company.
Why Was Vishal Garg Removed?
Better's board terminated Garg as CEO on August 3, 2026, according to recent reporting.
The board has raised concerns about his judgment, temperament and credibility. It also cited issues surrounding the company's quarterly reporting and broader financial performance.
The dispute has become increasingly public.
Garg has rejected the board's account of events and is now attempting to rally shareholders behind his effort to change the company's leadership.
According to reports, investors representing about 52% of voting shares have been mobilised in the challenge, while Garg has called for five directors to leave the board. The process could lead to a shareholder vote on the company's leadership.
That makes this more than an employment dispute. It is potentially a corporate-control battle.
Garg Says He Was “Hoodwinked”
Garg has accused Daniel Lewis, the executive who replaced him, of misleading him about his intentions toward Better's strategy and leadership.
Reports say Garg believes Lewis supported the company's direction before joining the board and later became involved in the decision to remove him. Garg has described himself as feeling “hoodwinked” by the sequence of events.
These are Garg's allegations in an ongoing corporate dispute and should not be treated as established findings.
The board, meanwhile, has defended its decision to remove him.
That leaves shareholders with competing narratives—and a potentially important vote ahead.
Garg Still Has Significant Voting Power
One reason Garg can mount such a challenge is that he remains a significant shareholder in Better.
The company's 2026 proxy statement listed Garg with approximately 1.98 million Class A shares and 1.91 million Class B shares, with Class B shares carrying substantially greater voting power. The filing reported Garg with 40.4% of the Class B shares.
This distinction between economic ownership and voting control is important.
A shareholder does not necessarily need to own more than half of all outstanding shares to have substantial influence if different classes of shares carry different voting rights.
For investors, the capital structure therefore matters as much as the headline shareholding percentage.
Better's Business Is Still in Turnaround Mode
The boardroom fight is happening while Better attempts to rebuild its mortgage business.
The company reported $1.64 billion in preliminary funded loan volume for Q1 2026, an 89% increase from the same period a year earlier. Better said the figure exceeded its previous guidance.
The company has also been focusing heavily on technology and artificial intelligence as it tries to make mortgage origination faster and less expensive.
That strategy makes the current leadership dispute particularly significant.
A company attempting a technology-led turnaround needs management continuity, capital discipline and confidence from employees, customers and investors. A prolonged fight over the board and CEO can complicate all three.
Why Better's Financial Performance Matters More Than the Drama
The viral part of this story is Garg's history with the 900 layoffs.
For shareholders, however, the more important issue is whether Better can eventually generate sustainable profits.
The company's Q1 2026 announcement highlighted strong loan-volume growth and strategic actions designed to support profitable growth. It also announced a $60 million public offering, with an overallotment option that could bring the offering to $69 million before underwriting discounts and commissions.
This tells investors something important: growth alone is not enough.
Better needs to translate higher loan volumes and technology investments into better margins, stronger cash generation and eventually consistent profitability.
The CEO dispute is therefore happening against the backdrop of a business turnaround that remains unfinished.
What Could Happen Next?
There are several possible outcomes.
1. Garg's shareholder campaign succeeds
If Garg and supporting investors secure enough votes, the board could face changes and Garg could potentially regain an executive position.
That would represent a remarkable reversal only days after his removal.
2. The existing board retains control
If shareholders back the current directors, Garg's attempt to return could fail. Better would then have to move forward under its new leadership and demonstrate that the change improves governance and business execution.
3. The dispute continues
Corporate-control battles can take time. Legal proceedings, shareholder communications and competing board campaigns could create additional uncertainty even before a final outcome is reached.
For investors, the third scenario may be particularly important in the short term because prolonged uncertainty can distract management from operating the underlying business.
What Investors Should Watch
The most important developments now are not social-media reactions to Garg's 2021 Zoom call. Investors should focus on measurable events.
Key indicators include:
Any formal shareholder vote or board-replacement process
Garg's voting position and shareholder support
Better's quarterly financial filings
Funded loan volume and revenue growth
Operating expenses and cash position
Progress toward sustainable profitability
The company's AI and technology strategy
Any legal or regulatory developments
Whether management changes affect business guidance
The company's share price can react sharply to leadership news, but short-term market movements should not be confused with proof that a turnaround is succeeding or failing.
The Leadership Lesson Behind the Story
The unusual arc of Garg's career at Better.com highlights a broader issue in modern corporate governance.
Founders can be essential to a company's identity and strategy, but once a company becomes publicly traded, the relationship between the founder, board and shareholders becomes more complicated.
A founder may have deep knowledge of the business while directors have responsibilities to the company and its shareholders as a whole.
The current Better dispute is therefore about more than one CEO.
It raises a familiar question for founder-led companies: when should shareholders continue backing the founder, and when should the board prioritise a change in leadership?
The answer ultimately depends on governance, performance, strategy and shareholder rights—not on the popularity of either side.
The Bottom Line
Vishal Garg, the Better.com founder who became notorious after firing around 900 employees on a Zoom call just before Christmas in 2021, was removed as CEO on August 3, 2026. He is now attempting to reverse that decision and regain influence over the company.
Garg's significant voting position gives him a route to challenge the board, while the directors have defended his removal and raised concerns about his leadership and corporate decisions.
For investors, the real test is whether Better can keep growing its mortgage business and turn its technology strategy into sustainable profitability while the leadership battle plays out.
The next shareholder and boardroom developments could determine who controls Better—and whether the founder who once made headlines for firing hundreds of employees gets another chance to run the company.
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This article is for informational and educational purposes only and should not be considered investment advice
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