UPDATE: In one of new Zenefits CEO's first moves, company to lay off 45% of workforce
- Zenefits has announced the hiring of Jay Fulcher as its new CEO, reports Employee Benefit Advisor. Fulcher is the former CEO of Ooyala, an online video technology startup. Buzzfeed News reports that one of Fuclher's first moves is the layoff of 430 employees — accounting for 45% of its workforce.
- Fulcher's appointment comes after Parker Conrad resigned as CEO last February, when it was revealed that the company tried to circumvent broker licensing rules. Davis Sacks stepped down as CEO in December, says EBA.
- In a public statement, a Zenefits’ spokesperson said, “Benefits administration is a cornerstone of the Zenefits platform and will continue to be. As CEO, Jay will continue to execute the vision and evolve the all-in-one HR platform, of which benefits administration is an integrated part.”
Sacks' resignation had been the subject of reports toward the end of 2016, with one unnamed source saying the now former Zenefits CEO would join President Donald Trump's transition team.
In an email to employees, Fulcher addressed the difficulty of dealing with the company's upheaval to employees while praising its efforts to adapt.
Following Conrad's resignation, the company announced the launch of its Z2 software platform before revamping its offerings under the HR One initiative last week. The announcement of firings, however, appears to be an indication that the company's restructuring efforts will go beyond its core software product.
- Employee Benefit Adviser Zenefits announces new tech-focused CEO
- HR Dive Zenefits 'HR One' initiative targets app upgrades, new integrations