According to an internal memo obtained by Buzzfeed News, human resources startup Zenefits is shuttering an office in Arizona and restructuring its operations team.
According to Buzzfeed, about 106 people, or 9% of the company, will lose their jobs. And Zenefits CEO David Sacks is also offering employees a one-time offer to leave the company.
In its quest for growth, Zenefits had previously allowed unlicensed salespeople to sell health insurance to its customers. This compliance oversight prompted a wave of controversy, prompting CEO Parker Conrad to step down earlier this year.
This is Zenefits’s second big round of layoffs in less than a year. In February, it let go an additional 250 people, primarily from the sales team. CF