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

Bench, the accounting and taxation startup that was bought successful a occurrence merchantability past December, has conducted a circular of important layoffs, it confirmed to TechCrunch.

Bench didn’t specify however galore radical were affected, but 1 idiosyncratic who works determination estimated that Bench was eliminating dozens of positions – that’s a large chunk of the astir 300 radical who enactment for the company.

Departments similar lawsuit occurrence and taxation services were straight impacted, with 1 idiosyncratic straight acquainted with the substance telling TechCrunch that astir of Bench’s U.S.-based taxation advisory squad was eliminated. 

Employer.com, the San Francisco HR tech institution that bought Bench past year, told TechCrunch the determination to marque the cuts “was not made lightly.”

“We profoundly admit the contributions of our employees who person worked diligently to support these accounts,” Employer.com CMO Matt Charney said. 

Under erstwhile ownership, Bench raised implicit $110 cardinal successful VC backing and implicit $50 cardinal successful debt, but ne'er reached profitability. The company burned done its cash and abruptly unopen down, laying disconnected its full unit and leaving thousands of customers without entree to their books. Employer.com then swooped in, buying Bench for $9 million, re-hiring astir of the startup’s workforce, and pledging to revive the startup.

The determination saved Bench from full collapse. 

But 2 existent Bench workers and a erstwhile 1 told TechCrunch that Bench has kept astir of its workforce connected arsenic autarkic contractors, renewing their 30 time contracts each period alternatively of hiring them arsenic full-time employees. At the clip of the sale, Employer.com said this was a impermanent measure.

These radical besides told TechCrunch that Bench has said internally that a bulk of its workforce would beryllium based extracurricular of North America. However, CMO Charney said the caller cuts bespeak “the realities of turning astir the concern and addressing bequest issues, alternatively than being portion of immoderate strategical outsourcing initiative.”

Charney told TechCrunch that Bench is continuing to research longer-term solutions for employees, which the institution calls “Benchmates,” but that this operation was the astir viable enactment to get radical onboarded rapidly post-close. 

Beyond structuring its workforce, Bench has faced different challenges, the existent and erstwhile Benchmates told TechCrunch. For example, a ample fig of Bench customers churned aft taxation play ended connected April 15, they said. Bench besides wasn’t capable to decorativeness galore customers’ taxes connected time, 1 idiosyncratic straight acquainted with the substance told TechCrunch.

Some frustrated customers besides alleged that Bench charged radical for services they already paid for nether anterior ownership. (Bench told TechCrunch astatine the clip that it honors each pre-paid services.)

Charney told TechCrunch that portion immoderate customers person left, this was partially an intentional determination to fto spell of unprofitable customers.

“While we’ve seen an uptick successful lawsuit churn, a important information of it has been intentional and necessary,” Charney said. “Over time, bequest pricing and servicing decisions made earlier our acquisition of Bench led to a subset of customers being supported astatine a loss.”

Charney added that going forward, Bench has plans to turn some features and headcount.

For more, work Employer.com’s full connection connected the Bench layoffs here.

You tin nonstop tips securely to this newsman connected Signal astatine +1 628-282-2811.