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Human Resources Startup Zenefits Is Laying Off Almost Half Its Employees (buzzfeed.com)
An anonymous reader shares a report: Zenefits will lay off 45% of its employees in an effort to slash costs, according to an internal memo this morning that was obtained by BuzzFeed News, a stark acknowledgment by the embattled human resources startup that its onetime expectations for growth were vastly inflated. Roughly 430 workers will be cut, including 250 in Zenefits' San Francisco headquarters and 150 in its office in Tempe, Arizona, leaving the company with about 500 employees, according to the memo and a person briefed on the matter. That's about a third of the size it was a year ago, when it ousted its founding CEO, Parker Conrad, over revelations that it flouted state regulations for selling health insurance. Thursday's announcement, coming on the morning after the one-year anniversary of Conrad's departure, is the third round of layoffs -- and the largest -- to hit the company since the crisis began.
Small companies contract out their HR.
I work for a small contracting agency. They outsource everything online. Google Mail for email, Intuit QuickBooks for bookkeeping, and an HR provider for benefits and payroll. The 20 or so people at the NYC headquarters is to keep tabs on hundreds of contractors throughout the U.S. and maintain onsite records for government inspectors.