Zenefits to lay off 45% of its workforce

Zenefits, a health insurance and human resources startup based in San Francisco, is laying off 430 employees, or about 45 percent of its workforce, according to the San Francisco Business Journal.

In a statement to the San Francisco Business Journal, a Zenefits spokesperson said the layoffs are attributable to several factors, including the company's decision to centralize operations in Arizona and partner with third parties for some of its insurance operations work.

After the layoffs, Zenefits will have about 500 employees, according to the report.

This is the company's third round of layoffs in a year. Zenefits laid off 250 employees in February 2016 and another 106 in June.

The jobs cuts came after insurance regulators in multiple states accused Zenefits of allowing its staff to sell insurance without proper licenses and circumventing insurance agent education requirements. The company agreed to pay about $3.7 million to resolve the charges in November.

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