Vishal Garg’s action causes a ripple effect, top 3 executives quit, more to follow



Earlier this week, when the Indian American CEO, Vishal Garg fired 900 of his employees at one shot through a virtual call, it sent shocking waves across the globe.

Naturally, Garg received a lot of heat from several corners and was even called being ‘heartless’.

Cutting off a big chunk of a workforce in such a manner, sends out wrong message about the culture of the organization.

On this regard, three of the company’s top executives put down their papers and more are expected to follow suit. tThe company’s head of marketing, head of public relations, and vice president of communications from handing in their resignation.

“This is a first wave of resignations, and the company expects more,” a person familiar with the matter said reports.

Although Garg later apologized for the manner in which he handled the layoffs, his actions has put the company in a bad light.

The three senior employees were not asked to step down. The outgoing head of public relations Tanya Gillogley, head of marketing Melanie Hahn, and VP of communications Patrick Lenihan all declined to comment on the matter.

Vishal Garg, who has come under intense criticism after the SoftBank-backed company laid off about 9 per cent of its workforce through the video call, said he had “blundered the execution” of communicating the layoffs.

“I realize that the way I communicated this news made a difficult situation worse,” Garg said in a letter dated Tuesday.

The CEO had cited the market, performance and productivity as reasons behind the decision to lay off employees in the United States and India.

“This isn’t news that you’re going to want to hear…If you’re on this call, you are part of the unlucky group that is being laid off. Your employment here is terminated effective immediately,” he told 900 employees during the Zoom call.

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