Online mortgage start-up lays off 9% of its staff, or around 900, as IPO approaches
- Mortgage startup Better to lay off 9% of its staff, or around 900, TechCrunch reported.
- The company recently hired 7,000 people and is expected to go public with a valuation of $ 6.9 billion.
- The company also received an injection of $ 750 million from its backers, including SoftBank.
Online mortgage startup Better to lay off 9% of its staff, or around 900, TechCrunch reported Wednesday.
The company hired 7,000 people in anticipation of a
merger with blank check company Aurora Acquisition Corp to go public, bringing the company’s value to $ 6.9 billion.
This week, the New York-based company, which LinkedIn named America’s best startup in 2020 and 2021, received an injection of $ 750 million from its backers, including Aurora and SoftBank.
Citing anonymous sources, TechCrunch said one of the reasons for the layoffs is that rising mortgage rates are expected to cause the mortgage market to contract. Additionally, he reported, Better’s focus on loan automation could mean less need for manual labor.
The company sent Insider a statement from CFO Kevin Ryan: “A fortress balance sheet and a small, concentrated workforce has allowed us to play the offensive game to enter a homeownership market by. radical evolution. “
Do you work at Better? Do you have a story to share about working there or a glimpse of his layoffs? Contact reporter Alex Nicoll through the Signal encrypted messaging app at +1 (646) 768-4772 using a non-work phone, email to [email protected], or Twitter DM to @AlexONicoll.