Zenefits cuts workforce after naming new CEO
Just days after hiring Jay Fulcher as CEO to replace David Sacks, the interim CEO who took over after former CEO Parker Conrad was ousted over a fraud investigation, Zenefits in February 2017 announced a third and largest round of layoffs in a year that saw the embattled company fined $7 million as part of a settlement with the state of California.
The layoffs are part of a plan to repair the company’s culture and refocus its mission. The plan predates Fulcher’s appointment as CEO.
The company, which employed roughly 1,500 people in 2016, saw its valuation cut as a result of a fraud investigation in which the company was found liable for helping employees illegally obtain licenses to sell insurance.
The layoffs will help the company centralize its operations in Arizona and build out product and engineering teams in Vancouver and Bangalore in addition to its San Francisco team.