Zenefits To Cut 250 Jobs
Following a host of regulatory issues, newly appointed CEO David Sacks is reducing Zenefits's workforce by 17%.
Zenefits, the health insurance brokerage startup that once chastised workers for engaging in stairwell sex, is laying off 250 employees—about 17% of the company's workforce, according to TechCrunch. In a company-wide email disclosing the news, CEO David Sacks said the majority of cuts would come from the sales team, citing growth that was "too fast, stretching both our culture and our controls" as an explanation for the layoffs.