United Wholesale Mortgage CEO and President Mat Ishbia stated on his Linkedin profile he is “disappointed” with Rocket after it announced plans to lay off 8 percent of its workforce. This is only the recent event in the long-running feud between the two Detroit-based lenders.
“This should not be necessary for a company that made over $5 billion last year in profits,” Ishbia wrote.
The statement from Ishbia did mischaracterize the plan from Rocket as a layoff when it is in fact a voluntary buyout which offers incentives to any employee which accepts the offer, including:
- Several-months long compensation package.
- Full medical, dental, and vision coverage for six months.
- Payment for banked personal time.
- Early vesting of stock incentives that were received at the company’s IPO.
- Outplacement services.
The statement has received over 7,000 responses and 500 comments, the bulk of which are supportive if Ishbia’s statement.
“Even though United Wholesale Mortgage directly competes with Rocket, I hate seeing this type of negative impact on families in Metro Detroit,” Ishbia wrote. “These 2,000-plus people will struggle to find new jobs, and I think it’s disgusting that [Rocket is] thinking short term and are solely focused on cutting a few million per month in costs… this is the wrong thing to do to people.”
Ishbia added he is proud UWM has not “had a single layoff in 35 years” and that UWM “will never have a layoff because we are a family company focused on what’s best for out people.”