Bench, the accounting startup acquired by Employer.com, recently announced layoffs affecting a sizable portion of its workforce, particularly in client success and tax services. Despite previous funding successes, Bench never achieved profitability and was sold for $9 million after a shutdown left customers without services. Although Employer.com has retained some original employees as contractors, many have not been hired back full-time. The company's CMO explained that the layoffs are part of necessary business restructuring rather than any outsourcing strategy.
Employer.com deeply appreciates the contributions of our employees who have worked diligently to maintain these accounts; the decision to make the cuts was not made lightly.
Despite raising over $110 million, Bench never reached profitability and burned through cash, leading to its drastic sale and subsequent layoffs after acquisition.
Bench has kept most of its workforce on as independent contractors, renewing 30-day contracts each month instead of hiring them back as full-time employees.
The recent cuts reflect the realities of turning around the business and addressing legacy issues, not part of a strategic outsourcing initiative.
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