Bench, the accounting and tax startup that was purchased in a fireplace sale final December, has carried out a spherical of great layoffs, it confirmed to TechCrunch.
Bench didn’t specify how many individuals have been affected, however one one who works there estimated that Bench was eliminating dozens of positions – that’s an enormous chunk of the round 300 individuals who work for the corporate.
Departments like consumer success and tax providers have been instantly impacted, with one particular person instantly accustomed to the matter telling TechCrunch that almost all of Bench’s U.S.-based tax advisory group was eradicated.
Employer.com, the San Francisco HR tech firm that purchased Bench final 12 months, instructed TechCrunch the choice to make the cuts “was not made flippantly.”
“We deeply recognize the contributions of our staff who’ve labored diligently to keep up these accounts,” Employer.com CMO Matt Charney mentioned.
Below earlier possession, Bench raised over $110 million in VC funding and over $50 million in debt, however by no means reached profitability. The firm burned by means of its money and abruptly shut down, shedding its total workers and leaving hundreds of consumers with out entry to their books. Employer.com then swooped in, shopping for Bench for $9 million, re-hiring many of the startup’s workforce, and pledging to revive the startup.
The transfer saved Bench from complete collapse.
Techcrunch occasion
Berkeley, CA
|
June 5
However two present Bench staff and a former one instructed TechCrunch that Bench has stored most of its workforce on as unbiased contractors, renewing their 30 day contracts each month as a substitute of hiring them as full-time staff. On the time of the sale, Employer.com mentioned this was a brief measure.
These individuals additionally instructed TechCrunch that Bench has mentioned internally {that a} majority of its workforce could be based mostly outdoors of North America. Nonetheless, CMO Charney mentioned the current cuts mirror “the realities of turning across the enterprise and addressing legacy points, relatively than being a part of any strategic outsourcing initiative.”
Charney instructed TechCrunch that Bench is continuous to discover longer-term options for workers, which the corporate calls “Benchmates,” however that this construction was essentially the most viable choice to get individuals onboarded shortly post-close.
Past structuring its workforce, Bench has confronted different challenges, the present and former Benchmates instructed TechCrunch. For instance, numerous Bench prospects churned after tax season ended on April 15, they mentioned. Bench additionally wasn’t capable of end many shoppers’ taxes on time, one particular person instantly accustomed to the matter instructed TechCrunch.
Some annoyed prospects additionally alleged that Bench charged individuals for providers they already paid for below prior possession. (Bench instructed TechCrunch on the time that it honors all pre-paid providers.)
Charney instructed TechCrunch that whereas some prospects have left, this was partly an intentional transfer to let go of unprofitable prospects.
“Whereas we’ve seen an uptick in buyer churn, a good portion of it has been intentional and vital,” Charney mentioned. “Over time, legacy pricing and servicing selections made earlier than our acquisition of Bench led to a subset of consumers being supported at a loss.”
Charney added that going ahead, Bench has plans to develop each options and headcount.
For extra, learn Employer.com’s full assertion on the Bench layoffs right here.
You’ll be able to ship suggestions securely to this reporter on Sign at +1 628-282-2811.
