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 [1].
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.”
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