Zenefits to cut 250 Jobs

Zenefits, the health insurance brokerage startup that after chastised staff for attractive in stairwell intercourse, is laying off 250 staff—about 17% of the corporate’s personnel, in line with TechCrunch. In an organization-broad e mail disclosing the information, CEO David Sacks stated nearly all of cuts would come from the sales workforce, citing growth that used to be “too fast, stretching both our culture and our controls” as an reason behind the layoffs.

“This reduction enables us to refocus our strategy, rebuild consistent with our new company values, and develop in a managed means on the way to be strategic for our business and beneficial for our shoppers,” Sacks wrote. Sacks was once promoted from COO to CEO just a few weeks ago, when founder and former CEO Parker Conrad stepped down amid studies that Zenefits gross sales representatives had assumed the roles of insurance coverage brokers with out the skills to take action.

When Sacks took on the position, he told staff that he supposed to right the ship following the allegations—a plan that he reiterated as he announced the layoffs. “after I become CEO of Zenefits, I promised on Day 1 to reset our culture, refocus our technique on serving small businesses, and create a brand new beginning for fulfillment one day,” Sacks wrote.

Zenefits is at present beneath investigation in each California and Washington for potential regulatory violations.

[by way of TechCrunch]