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Bench , the accounting and tax startup that wasbought in a fire cut-rate sale last December , has conducted a round of pregnant layoff , it confirmed to TechCrunch .
Bench did n’t stipulate how many multitude were affect , but one person who mold there forecast that Bench was excrete tons of status – that ’s a big chunk of the around 300 people who function for the troupe .
department like client winner and taxation service were directly impact , with one person directly familiar with the matter differentiate TechCrunch that most of Bench ’s U.S.-based tax advisory team was eliminated .
Employer.com , the San Francisco HR tech caller thatbought Bench last twelvemonth , say TechCrunch the conclusion to make the cut “ was not made lightly . ”
“ We deep appreciate the contributions of our employee who have worked diligently to hold these accounts , ” Employer.com CMO Matt Charney said .
Under premature ownership , Bench raised over $ 110 million in VC financial backing and over $ 50 million in debt , but never get hold of profitability . Thecompany burn up through its cashand abruptly exclude down , laying off its entire staff andleaving thousands of customers without admission to their Quran . Employer.comthen swooped in , buy Bench for$9 million , re - hiring most of the inauguration ’s workforce , and pledge to revive the inauguration .
The move economise Bench from total crash .
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But two current Bench workers and a former one told TechCrunch that Bench has keep most of its hands on as independent contractors , regenerate their 30 mean solar day contract every calendar month instead of hiring them as full - time employees . At the clip of the sales agreement , Employer.com read this was a impermanent touchstone .
These people also told TechCrunch that Bench has said internally that a absolute majority of its workforce would be ground outside of North America . However , CMO Charney tell the recent cuts muse “ the realities of become around the business and addressing legacy issues , rather than being part of any strategic outsourcing opening move . ”
Charney told TechCrunch that Bench is go on to explore longer - term solutions for employee , which the company calls “ Benchmates , ” but that this structure was the most viable option to get people onboarded quickly post - close .
Beyond structure its hands , Bench has face other challenges , the current and former Benchmates narrate TechCrunch . For example , a orotund number of Bench customers churned after tax time of year terminate on April 15 , they said . Bench also was n’t able to end many customers ’ taxes on metre , one mortal immediately familiar with the matter told TechCrunch .
Some frustrated customers alsoalleged that Bench charged people for services they already pay forunder anterior ownership . ( Bench assure TechCrunch at the time that it observe all pre - paid overhaul . )
Charney say TechCrunch that while some customers have left , this was part an intentional move to let go of unprofitable customer .
“ While we ’ve fancy an uptick in client churn , a significant constituent of it has been intentional and necessary , ” Charney read . “ Over time , legacy pricing and servicing decisions made before our attainment of Bench led to a subset of customers being endure at a loss . ”
Charney added that going forrader , Bench has plans to produce both feature article and headcount .
For more , say Employer.com’sfull statement on the Bench layoffs here .
you may send confidential information securely to this reporter on Signal at +1 628 - 282 - 2811 .
