Bench, the startup that dabbles in accounting and tax services, has announced a round of significant layoffs. This follows its purchase during a fire sale last December, and it’s stirring up quite the conversation in the fintech community. Though they haven’t revealed the exact number of jobs lost, estimates suggest dozens of positions were cut, particularly in departments like client success and tax services. One insider claims most of the U.S.-based tax advisory team has been let go, which signals troubling times ahead for the company’s restructuring efforts.
After burning through substantial funds without achieving profitability, these layoffs come as part of a broader strategy to address ongoing challenges and profitability issues. Employer.com, which acquired Bench, described the decision as difficult but necessary for turning around the business. In the meantime, many former employees find themselves working as independent contractors on a month-to-month basis, which raises questions about job security and company direction.
Key Points
- Bench has implemented significant layoffs, affecting several departments, particularly client success and tax services.
- Despite the acquisition, the company has struggled with profitability and high employee turnover.
- Many employees have transitioned to independent contractor roles, renewing contracts monthly, rather than being hired back into full-time positions.
- Employer.com emphasises that these tough decisions were necessary to address the business’s legacy issues.
- Bench aims to restructure and explore long-term solutions for its workforce, despite recent challenges.
Why should I read this?
If you’re in the fintech scene or even just curious about how companies navigate these turbulent times, this article gives you the inside scoop on ongoing layoffs and restructuring efforts at Bench. It’s like having a front-row seat to a dramatic business turnaround—don’t miss out on understanding how such decisions shape the future of startups in the tech space!