Bench Conducts Significant Layoffs After Acquisition
Bench, the accounting and tax startup that was acquired in a fire sale last December, has recently confirmed to JS that it has conducted a round of significant layoffs. The company did not disclose the exact number of employees affected, but sources estimate that dozens of positions have been eliminated, impacting a large portion of the approximately 300-person workforce.
The layoffs primarily affected departments such as client success and tax services, with a significant portion of Bench’s U.S.-based tax advisory team being let go. Employer.com, the San Francisco HR tech company that acquired Bench, stated that the decision to make these cuts was not taken lightly.
Under its previous ownership, Bench had raised substantial funding but never achieved profitability. Following financial difficulties, the company abruptly shut down, leaving customers without access to their books. Employer.com stepped in and acquired Bench for $9 million, re-hiring most of the staff and vowing to revitalize the startup.
While the acquisition saved Bench from total collapse, challenges remain. The company has retained most of its workforce as independent contractors on 30-day contracts, rather than hiring them as full-time employees. Bench has also indicated plans to have a majority of its workforce based outside of North America.
Despite facing post-acquisition challenges, including customer churn and delays in tax filings, Bench is working towards long-term solutions for its employees, known as “Benchmates.” The company is focused on addressing legacy issues and turning around the business.
Looking ahead, Bench aims to grow its features and headcount, with plans to enhance its services and customer experience. While some customers have left, Bench is strategically letting go of unprofitable clients to ensure sustainable growth in the future.
For further details, you can read Employer.com’s full statement on the Bench layoffs here.
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