CEO Takes Time Off After Video of Him Virtually Firing 900 Employees Goes Viral

Written by obenlegal

December 15, 2021

The Run-Down: CEO, Vishal Garg, of online mortgage lender, will take a hiatus from the organization after a video surfaced online in which he tells 900 employees they are “part of the unlucky group that is being laid off”

  1. In the video, Garg stated he did not want to “do this” and claimed that he did not want to become emotional, as he had before when previously announcing layoffs to employees
  2. After the video was released, an internal email was sent to all employees, in which the event was said to be “very regrettable”
  3. The board of directors and chief compliance officer have agreed to bring in an outside firm to assess its culture and leadership

Why You Should Care:

  • The level of importance social media plays in the building and maintaining of a brand’s reputation cannot be understated. Time and time again, we see key members of organizations publicly blundering major announcements, making insensitive comments, and ultimately falling short of living up to the public’s expectations- always being exposed through social media. Those who hold high-level positions within major companies should know the things they say and do will be under a microscope. Because of this, their messaging must be on point. Even further, as leaders, they should genuinely want to govern with integrity and ethics at the forefront.
  • In the case of, over the last year, Garg had numerous instances of problematic behavior. From being sued by a group of investors who faced a strange attack from Garg to already being in hot water with employees after berating them during a town hall meeting following an earlier round of layoffs, was on notice that Garg’s behavior was concerning to investors and employees. 
  • This situation serves as a reminder that high-level members of an organization must remain actively involved in the supervision of their business. They must be willing to call out problematic behavior and address the root cause of issues. Similarly, they must also lead with compassion and understanding. Garg’s behavior shows that he was out of touch with the needs of his employees, which led to a general disconnect amongst the organization. Ultimately, with the accessibility of social media and the current climate, now is the time for companies to take a strong stance and truly create a positive work environment. 

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