Online mortgage lender Better has reportedly laid off around 900 employees in the United States and India today.
TechCrunch reported that the New York-based mortgage start-up has cut 9% of its workforce weeks ahead of the holidays and its recently announced $1.5 billion SPAC merger with blank-check company Aurora Acquisition – a deal that values Better at $6.9 billion. The company is also getting a $750 million cash injection from SoftBank Group.
Better declined to comment on the staff reductions. However, company sources told TechCrunch that one factor that drove the decision behind the layoffs was the anticipated contraction of the mortgage market due to rising mortgage rates. The company, which has been focused on refinances, said the move will enable it to expand its offering beyond refis and purchases – adding title and homeowner’s insurance to its product suite.