Zenefits cutting 430 jobs in latest cost-cutting move

Zenefits, the troubled HR software startup, is laying off nearly half its employees as it continues to cut costs.

The layoffs, which will affect 430 workers, or 45 percent of the company’s workforce, are just the latest round of job cuts for the company, whose well-known problems have included fudging licensing requirements for selling health insurance and the ousting of its founding CEO. The company’s San Francisco headquarters will lose 250 employees.

A Zenefits spokesman confirmed the numbers, which were first reported by BuzzFeed, in an email to SiliconBeat.

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.

The company is centralizing operations in Arizona; “partnering with third parties for some of the seasonal work”; and “building out” its product and engineering teams in Vancouver and Bangalore.

The cuts will help “dramatically” reduce costs, the company said, and allow it to have “enough cash to fund our operations for years to come.”

Last year, Zenefits shed about 350 jobs after Conrad’s departure. The company also cut its valuation by about half, from $4.5 billion to $2 billion.

 

Above: A screen shot of Zenefits software for selecting health benefits. (Courtesy Zenefits)

 

Tags: , ,

 

Share this Post



 
 
 
  • I was paid 104 thousand bucks in 2016 by freelancing on-line a­n­d I manage to earn that much by w­o­r­k­i­n­g part time f­o­r few hours each day. I followed a business model I stumbled upon online and I am excited that i earned so much money. It’s beginner friendly a­­n­­d I am just so happy that i discovered it. Here is what i did… http://timely84.com

  • I have earned 104 thousand dollars in last twelve months by doing an on-line job at my house and I did it by work­ing part-time f­­o­­r several hrs every day. I followed an earning model I came across from company that i found online and I am so happy that i was able to make such great money. It’s really beginner friendly and I am just so happy that I found out about it. Here’s what I did… http://statictab.com/dntj48t

 
 
css.php