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)


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