CEO fires 900 staff on a Zoom call...

In case you’ve missed it in the news, the latest staggeringly poor example of business leadership is brought to us courtesy of Better.com CEO Vishal Garg.   

Typically, I’m hesitant to openly criticise leaders who are the subject of media scrutiny because I know all too well how complex scenarios can be. More often than not many sides of a story need to be told for a complete picture of the truth to form.     

On this occasion however it’s easy to observe directly the highly problematic attitudes this leader brings to his role. Thanks to technology and social media we’re able to listen to Vishal’s own words and observe him in action.  

If you haven’t watched it yet, here is a link to the viral video of the Zoom call in which he tells those gathered “If you’re on this call, you are part of the unlucky group that is being laid off”. Online comments since made by Vishal together with the decisions of three senior leaders on his team to resign from their positions, all provide insight.   

In my view the decision to terminate the employment of 900 people on mass, right before Christmas is arguably reflection of a leader who lacks common decency. For a lot of reasons starting with was it really necessary.   

Even if the headcount reductions are ultimately needed, did it really have to happen before a significant holiday for so many of the people impacted?  Vishal is reported to have said, “we should have done this 3 months ago” – so why didn’t he? Why now, particularly given the recent major funding injection from investors? 

It’s mind boggling to me that any leader would think communicating the decision to terminate someone’s employment on mass is appropriate.  The lack of empathy, compassion, sensitivity and respect shown toward each of the 900 people impacted is disgraceful.   

I appreciate that COVID-19 may be behind why an online forum was necessary – but at the very least the message should have been delivered to everyone impacted, by their manager.   

If it was so important to Vishal that he deliver the message personally, then he could have provided his leadership team with a video for them to share during one-to-one meetings (or even small team meetings would have been A LOT better).  

Just as revealing as his action are his words.  “This is the second time in my career I’m doing this and I do not want to do this.  The last time I did it, I cried” Garg said on the call.  The polite version of what many people are likely to be thinking in that moment is “it’s not really relevant how you are feeling, it’s us that are being impacted”.   

It's common for leaders to make the mistake of talking about themselves, and how badly they are feeling, when no one losing their job is likely to care.  Its insensitive and on so many levels disrespectful to focus on our emotional discomfort when the people we are talking to are so much worse off.   

Vishal’s decision to blame the lay-offs on markets and the need to strengthen the financial position of the business on the one hand, but then brutally attack those who have been fired with accusations of theft and gross misconduct, is one sure way to lose trust and respect.   

 

 

To be clear, at times job losses are needed to protect the viability of the business and ensure it survives into the future. How those decisions are implemented however matters to the wellbeing of the people impacted as well as the engagement of the team who remain.  

I worry for the people left behind and hope many more of them join the senior leaders who have decided now is the right time to look for a CEO with integrity who is far more likely to have a positive impact on the quality of their work life.