Zenefits Lays Off Nearly Half Of Its Remaining Workers
The troubled company has cut 70 percent of its staff since its height in September 2015.
Reuters:
Zenefits Cuts Nearly Half Its Workforce As Startup's Struggles Continue
Zenefits is laying off nearly half its staff as the software startup grapples with the fallout of insurance violations that resulted in hefty penalties from state regulators. The company, which offers free human-resources software to manage benefits and payroll while making its money as an insurance broker, said on Thursday that 430 employees would lose their jobs. That leaves 4-year-old Zenefits with about 500 employees, roughly a third of what it had a year ago. (Somerville, 2/9)
The Wall Street Journal:
Zenefits Cuts Nearly Half Of Staff
In a memo to staff, the company’s new chief executive, Jay Fulcher, wrote that “in 2015, the company grew too quickly, hiring employees to support revenue projections that far surpass where we are today. Today’s action aligns our costs more closely to our business realities.” (Winkler, 2/9)
Modern Healthcare:
Zenefits Laying Off Nearly Half Of Its More Than 900 Employees
Zenefits faced accusations that it allowed unlicensed employees to handle insurance transactions and failed to meet insurance agent education requirements. It eventually paid $3.7 million to settle the charges. (Livingston, 2/9)
The Mercury News:
Zenefits Laying Off 430 Workers In Latest Cost-Cutting Move
The layoffs come days after a new CEO and chairman, Jay Fulcher, came on board, but a company spokesman said they were planned “for some time” by previous CEO David Sacks — who took the helm after Parker Conrad was forced to step down — plus other executives and the board of directors. Sacks, who said in December he would become chairman, remains on the board. (Sumagaysay, 2/9)