Zenefits Cuts Another 106 Jobs, 9% of its Workforce – New Product in Development
Zenefits in June 2016 announced it will cut 106 jobs, or about 9% of its workforce, and close an Arizona sales operation as it addresses licensing and governance issues. GBV in February 2016 had published another report on Zenefits, Zenefits hits more turbulence.
In total, Zenefits has now announced about 350 layoffs or approximately one quarter of its workforce, mostly in sales; including resignations, there remain fewer than 1,100 employees, down from a high of 1,640 in September 2015, only one year ago.
According to the company, it is now generating revenue near the $60 million rate. Customary valuations in the brokerage world (one to two times sales, depending of the recurrence of the business) put Zenefit’s in the $60-120 million bracket, a far cry from the $600 million of capital raised from Fidelity Investments, Andreessen Horowitz, Founders Fund and others.
New CEO David Sacks in June 2016 announced the company plans to launch in October 2016 a second version of its product, a “total redesign of Zenefits.”