Today, we took a hard but necessary decision to position Zenefits for long-term growth. We are saying goodbye to 430 employees. This has been planned for some time and is the result of a lot of hard work over the past year to improve our products and service and make the operations of the company more efficient. As a result, we have a dramatically improved cost structure, the ability to deliver a market-leading product roadmap that exceeds customer expectations, and enough cash to fund our operations for years to come.
There are a number of important factors that went into our decision to reduce the headcount in our company.
First, we decided to centralize our operations organization in Arizona. Additionally, we will be partnering with third parties for some of the seasonal work we do around insurance operations.
Next, we will be building out our product and engineering teams in Vancouver and Bangalore to better complement the already established and proven team we have in San Francisco.
Finally, our market (small- and medium-sized businesses) is very cost sensitive and requires the lowest-cost, highest-value solution possible. These changes are going to allow us to continue to build and deliver the industry's best all-in-one HR platform and service.
Today's actions have been planned for some time by the board, the prior CEO David Sacks, and the executive team, to put our new CEO Jay Fulcher and the organization as a whole in the best position for long-term success. This reduction in force is consistent with an overall turn-around program that began a year ago to correct regulatory compliance issues, reset our culture and values, increase operational efficiency, and introduce a new SaaS product and business model. All of these changes gave us the opportunity to attract a top-notch operator like Jay Fulcher, who will lead the company to the next stage of growth and profitability.
There are a number of important factors that went into our decision to reduce the headcount in our company.
First, we decided to centralize our operations organization in Arizona. Additionally, we will be partnering with third parties for some of the seasonal work we do around insurance operations.
Next, we will be building out our product and engineering teams in Vancouver and Bangalore to better complement the already established and proven team we have in San Francisco.
Finally, our market (small- and medium-sized businesses) is very cost sensitive and requires the lowest-cost, highest-value solution possible. These changes are going to allow us to continue to build and deliver the industry's best all-in-one HR platform and service.
Today's actions have been planned for some time by the board, the prior CEO David Sacks, and the executive team, to put our new CEO Jay Fulcher and the organization as a whole in the best position for long-term success. This reduction in force is consistent with an overall turn-around program that began a year ago to correct regulatory compliance issues, reset our culture and values, increase operational efficiency, and introduce a new SaaS product and business model. All of these changes gave us the opportunity to attract a top-notch operator like Jay Fulcher, who will lead the company to the next stage of growth and profitability.
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