Zenefits, which this week named Jay Fulcher as its third chief executive officer in its four years of existence, has confirmed that it is laying off 430 employees, leaving headcount at about 500.
In an emailed statement, the company said this “hard but necessary” decision was already being formulated by the company’s board and former chief executive David Sacks, prior to Fulcher’s arrival.
Zenefits, which is based in San Francisco, also said it is centralizing its operations group in Arizona and adding more engineers in Vancouver and Bangalore. It also plans to use third-party contractors to perform some seasonal work.
News of the job cuts was first reported by Buzzfeed.
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Zenefits, which sells payroll and benefits software to small and medium sized companies, has seen its share of turmoil over the past few years.
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Fulcher, who has served in the top job both at Agile Software and Ooyala, stepped in for David Sacks, former chief operating officer for the company. Sacks himself took over for his predecessor: company co-founder Parker Conrad, who resigned amid allegations that he enabled Zenefits software to bypass state insurance licensing requirements.