(Bloomberg) — Zenefits announced it will cut 45% of its workforce as new CEO Jay Fulcher reduces costs in the wake of regulatory scrutiny and management shakeups that collapsed the company’s expansion plans.
The 430 job cuts announced Thursday are the third round of staff reductions for the human resources software maker in the past year amid investigations that found some employees used software to skirt training requirements and sold health insurance without the necessary licenses. Zenefits agreed in November to pay as much as $7 million to the state of California over licensing violations. Thursday’s staff cuts were reported earlier by BuzzFeed.
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