Here are four things to know about the layoffs.
1. The cuts represent about 17 percent of the company’s workforce.
2. The cuts primarily affect the Zenefits sales teams.
3. The cuts follow weeks of turmoil at the company. Zenefits co-founder Parker Conrad, stepped down as CEO this month and left the board after it was revealed he had created software intended to defy insurance brokerage guidelines, according to the report. The company also was not in compliance with health insurance regulations in some markets, the report notes.
4. Mr. Sacks attributed the cuts to the company growing too fast, “stretching both our culture and our controls,” according to The New York Times. “This reduction enables us to refocus our strategy, rebuild in line with our new company values and grow in a controlled way that will be strategic for our business and beneficial for our customers,” he added in an email to employees.
More articles on leadership and management:
Practice Greenhealth launches hospital sustainability too
What is ‘CEO fraud’ and why has it cost companies $2B in 2 years?
10 recent not-to-be-missed healthcare podcasts
At Becker's 4th Annual CEO + CFO Roundtable, taking place November 2–5 in Chicago, more than 1,500 hospital and health system executives tackle decisions that determine whether organizations thrive or merely survive: protecting margins under cost pressure, choosing where to grow, renegotiating payer relationships, stabilizing the workforce and proving real ROI on technology. This is where leaders work through them together, face-to-face. Apply for complimentary registration now.