Better CEO Vishal Garg.
Better
Mortgage startup Better is laying off 9% of its staff, or about 900 people, TechCrunch reported.
The company recently hired 7,000 people and is set to go public with a $6.9 billion valuation.
The firm also got a $750 million cash infusion from its backers, which include SoftBank.
Online mortgage startup Better is laying off 9% of its staff, or about 900 people, TechCrunch reported Wednesday.
The firm hired 7,000 people ahead of an imminent SPAC merger with blank-check company Aurora Acquisition Corp to go public that puts the value of the company at $6.9 billion.
This week, the New York-based company, which LinkedIn named the best startup in America in both 2020 and 2021, got a $750 million cash infusion from its backers, which include Aurora and SoftBank.
Citing anonymous sources, TechCrunch said one reason for the layoffs is that rising mortgage rates are expected to result in a contraction of the mortgage market. In addition, it reported, Better's emphasis on automating loans might mean less need for manual labor.
The company, which declined to comment to TechCrunch, sent a statement from CFO Kevin Ryan: "A fortress balance sheet and a reduced and focused workforce together set us up to play offense going into a radically evolving homeownership market."
Better didn't immediately respond to a request for comment.
Do you work at Better? Do you have a story to share about working there or insight into its layoffs? Contact reporter Alex Nicoll via encrypted messaging app Signal at +1 (646) 768-4772 using a non-work phone, email at anicoll@businessinsider.com, or Twitter DM at @AlexONicoll.
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