Bench, the accounting and tax startup acquired last December, has recently confirmed significant layoffs. While the company didn’t disclose the exact number, insiders estimate dozens of positions—especially in client success and tax services—have been eliminated.
The new owner, Employer.com, stated that the decision was not made lightly, with many employees now working as independent contractors on a monthly renewal basis. This restructuring comes as Bench faces challenges, including customer churn and operational issues following a tumultuous period.
Key Points
- Bench has conducted significant layoffs impacting various departments, especially tax advisory.
- Employer.com acquired Bench last December and is restructuring the workforce with many employees now working as independent contractors.
- The company previously raised over $160 million but struggled to achieve profitability.
- Customer churn has increased after tax season, partly due to legacy pricing and service issues.
- Employer.com aims to improve operations and grow features while managing contract renewal for remaining staff.
Why should I read this?
If you’re in the fintech or startup space, this article reveals the harsh realities faced by companies trying to navigate post-acquisition adjustments. It’s a reminder that these shifts can directly affect jobs and services, making it crucial to stay informed about industry trends and workforce dynamics. Consider this a time-saver on an emerging story that could impact many in the sector.