An Indian-American entrepreneur, Vishal Garg, widely known for sacking 900 employees during a Zoom call, has been removed as chief executive of Better Home & Finance.

Mr Garg’s ouster came on August 3 after the board of directors voted unanimously to remove him as CEO over concerns about his “judgment, temperament and credibility.” He remains a board member.

The board also cited over $1.5 billion in losses since 2022 and a 90 per cent decline in its stock price during the former CEO’s tenure.

Hedge fund manager Daniel Lewis, who had joined the board a week before Mr Garg’s dismissal, was subsequently appointed to replace him.

The former CEO made headlines after dismissing 900 employees during a three-minute Zoom call before Christmas in 2021; he told the affected staff members their dismissals were “effective immediately.”

His decision drew backlash, leading him to take a leave of absence before returning as CEO.

Though Mr Garg, born in India and raised in New York, admitted during his interview with CNN that his 2021 decision negatively affected the financial technology company, he insisted the company was already making major progress.

“We’re winning. We’ve tripled loan volume. We’re close to profitability,” Mr Garg said. “We were at the five-yard line after taking the ball all the way down the field from the other side.”

He believed Mr Lewis, who joined the company’s board only on July 27, had deceived him and gained the directors’ confidence before eventually pushing for his ouster.

“He hoodwinked me,” Mr Garg said. “He said he liked the company’s strategy. He praised us on X and used that to get on our board and win our confidence.”

“I suspect he always wanted to become CEO,” said Mr Garg. “The board made a mistake.”

The company’s annual sales drastically dropped from $1.5 billion in 2021 to $70 million in 2023, less than two years after the mass layoffs. However, the entrepreneur said it is expected to record $200 million in sales this year.

During the COVID-19 pandemic, Better was worth about $8 billion, but after losing much of its market capitalisation, it is now worth roughly $300 million.

Mr Garg has hired prominent lawyer Alex Spiro to represent him as he challenges his removal as CEO. He had also sent a letter to the board on Monday demanding his reinstatement.

The former CEO also offered to work for $1 a year until the company returns to profitability.

“It’s an acknowledgement that I’ve been doing this for 10 years, but execution hasn’t been perfect,” he told CNN. “I hope it gets resolved. I think the future still remains very bright for Better.”