June 14, 2016
San Francisco-based Zenefits is cutting 106 workers, shuttering its Arizona sales office and offering separation agreements for others as part of a major restructuring. The benefits and health insurance platform is seeking to regain its early traction under CEO David Sacks’ new vision called Zenefits 2.0.
The company also reduced its workforce by 17% in February, cutting 250 jobs. The company came under insurance regulator scrutiny and has to work through serious compliance and management issues, but says that changes have been made and troubles are in the past.
Zenefits counts roughly 20,000 customers, most of whom have remained with the company as it works to turn itself around. Recent growth has come in the small business sector where it has back-filled losses experienced in the large employer category.