Zenefits of Human Resources Management Service dismissed nearly half of its employees, found that personnel management is not functioning

Human resource management servicesZenefitsHowever, we decided to dismiss 430 people, which is 45% of all employees. Zenefits, which was said to be one of the leading unicorns of Silicon Valley as it grew rapidly at tremendous speed seems to have a big turning point.

Zenefits layoffs cut nearly 50% of workforce - here's the email to staff - Business Insider
http://www.businessinsider.com/zenefits-layoffs-cut-nearly-500-employees-full-email-2017-2

Zenefits, which sells health insurance for small and medium enterprises and provides personnel services such as payroll calculation, tax calculation, attendance management in the cloud, funds of 582 million dollars (about 66 billion yen) from venture capital in 2 years of establishment Successful procurement, acquiring an enterprise value of 4.5 billion dollars (about 51 billion yen), such as a well known rapid growth company in Silicon Valley. In the United States, a company buys health insurance from an insurance company, but Zenefits not only mediates insurance sales but also provides personnel management such as payroll calculation and welfare management for the company that purchased insurance products in the cloud By offering a service of offering free of charge, it became popular mainly among small business customers.


Zenefits, which grows rapidly, has expanded its staff to become more confused as employees with more than 1,600 employees are in the peak and other employees do not know exactly what they are doing Thing. According to the Wall Street Journal, a used condom was found in the emergency staircase and "sex ban on the emergency stairway is prohibited" according to the Zenefits of the time, celebrating the contract and celebrating the party to drink all day. It is said that the morning in the company was in a state of disorder, such as issuance of a decree.


However, Mr. Parker Conrad, co-founder and co-founder of Zenefits, was then CEO of the then pretending to let employees who did not qualify to operate health insurance or take online training that was obliged to do insurance sales Coupled with the relaxed organizational structure triggered by the fact that software was developed and forced to retire, triggered a sharp deterioration in business performance. Mr. David Sax, co-founder of Zenefits and taking over from Mr. Conrad as CEO, took steps to restructure employees to rebuild the company.

Conrad


Zenefits in a saxophone system that fund raised funds from investors on condition that they are required to reduce the size of the company while promoting voluntary retirement, in February 2016, 250 people, which is 17% of all employees I was fired. At this point, the corporate value of Zenefits has decreased to 2 billion dollars (about 220 billion yen).

Zenefits announced a personnel affair with Mr. Jay Frucha as a new CEO in February 2017 one year after enforcing a large restructuring, but just three days after the new personnel announcement, Zenefits 45 We announced a second restructuring plan with contents saying to dismiss 430 people, which is%. Zenefits announces that "This restructuring plan has been planned by the board of directors, the CEO before the Saxophone and executives, so that Frucher CEO will lead the whole organization to long-term success".