Fintech Bench conducts layoff while others still work month-to-month

Bench, accounting and tax startup that was Purchased at fire sale last DecemberHe spent a circle of significant dismissals, Techcrunch confirmed.

Bench did not specify how many people were hit, but one person who works there estimated that the bench eliminated dozens of positions – this is a large part of about 300 people working for the company.

Departments such as client and tax service success were directly influenced, and one person was directly familiar with Techcrunch said that most of Bench’s US tax advisory team was eliminated.

Employer.com, Tech Tech San Francisco HR Bought a bench last yearsaid Techcrunch that the decision to make the cuts “was not easily made.”

“We deeply appreciate the contributions of our employees who worked hard to maintain these accounts,” said employer.com CMO Matt Charney.

According to the previous ownership, Bench has raised more than $ 110 million in VC funding over $ 50 million in debt, but has never reached profitability. AND The company burned through its money and closed abruptly, releasing the entire staff and leaving thousands of customers without access to your books. Employer.com Then he came inBuying a bench for $ 9 millionRe -hiring most of the startup workforce and an obligation to revive the startup.

This move saved the bench from the total collapse.

But two current workers on the bench and former said Techcrunh that Bench had maintained most of her work forces as independent performers, renewing her 30-day contracts every month instead of employing them as full-time employees. At the time of saleThe employer.com said it was a temporary measure.

These people also told Techcrunch that Bench internally said that most of his workforce would be based outside North America. However, CMO Charney said the recent cuts reflect “the reality of turning business and solving inherited questions, not to be part of any strategic initiative for outsourcing.”

Charney told Techcrunh that Bench continues to explore long -term solutions for employees, which the company calls “benchmates”, but that this structure was the most favorable option for quick closure of people.

In addition to structuring his workforce, Bench faced other challenges, the current and former benchmi told Techcrunch. For example, a large number of bench customers swallowed after the tax season ended on April 15, they said. Bench also failed to complete the taxes of many customers on time, said one person who is directly familiar with the issue.

Some frustrated customers also allegedly that the bench charged people for services they had already paid for under the previous ownership. (Bench told TechCrunh at the time to respect all paid services in advance.)

Charney told Techcrunh that, although some customers left, it was partly a deliberate move to indulge in non -profit customers.

“Although we saw progress in Churn, a significant part was deliberate and needed,” Charney said. “Over time, the inherited prices and servicing made before our purchase of the bench have led to the fact that the customer subset of customers is supported by loss.”

Charney added that next forward, Bench plans to grow both features and number.

For more, read the employer.com A complete statement of a bench release here.

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