Penalties against Zenefits and its former CEO for misleading investors show the SEC's aggressive new stance in Silicon Valley.
Roughly 430 employees will lose their jobs in Zenefits' single largest round of cuts, showing how the embattled startup fell far short of its lofty expectations.
The new strategy could help the embattled human resources startup gain surer financial footing.
Whoever takes over as CEO of the embattled startup will have to try to turn it from a cash incinerator into a cash machine.
David Sacks, who took over as Zenefits CEO amid a scandal in February, is open to the possibility of working in the administration of President-elect Donald Trump.
The embattled startup is awash in red ink, with an additional $100 million loss in the first half of the current fiscal year, according to a financial document shared with investors.
The claim, brought by a former sales rep under a federal labor law, punctuates a difficult year for the Silicon Valley human resources startup.
The HR software startup has now settled with eight state regulators that were investigating its insurance licensing scandal.
As his rival Zenefits prepares to launch a revamped version of its HR software, the Gusto CEO says "ideally the first movie is good enough on its own."
The deal, which will allow Zenefits to continue operating in Tennessee, gives the startup a precedent to use in negotiations with regulators in other states.
The deal will allow the company to avoid lawsuits stemming from its regulatory compliance scandal, it said on Thursday.
Parker Conrad, the Zenefits co-founder who was forced to resign in February, has hired two Zenefits engineers for a new startup, a person with knowledge of the matter said.
"I'm extremely proud of the 90% of you that have chosen to stay with the company," Zenefits chief David Sacks told staff in an email.
The once high-flying startup is remaking itself after a scandal and a period of fast growth. It will lay off 106 employees, in its second major overhaul this year.
Parker Conrad sold $10 million of stock months before the public learned of compliance failures that led to his resignation. The new CEO says he has changed the company’s values. “Everyone’s shit stinks” is now “Put the customer first.”
The champagne was flowing and the beat was bumping. But Zenefits couldn't get its sales team to deliver.
The layoffs reflect that "Zenefits grew too fast, stretching both our culture and our controls," the CEO told employees.
Zenefits seemed to have everything that makes a Silicon Valley investor drool. But the reality was a whole lot messier.
A secret software program inside Zenefits made it seem that brokers were completing a legally required 52-hour online training course and led them to certify under penalty of perjury that they had actually done so.
Authorities are examining whether the $4.5 billion startup, whose CEO resigned this week, complied with California law and regulations.
E-commerce startup Jet.com, with more than 1,000 employees, parted ways with Zenefits after frustration with the product.
The co-founder is departing after revelations that the company used unlicensed brokers to sell health insurance in multiple states.
Data obtained by BuzzFeed News shows the extent to which the company apparently flouted the state's insurance law. Zenefits says it is doing a "comprehensive review" of its licensing systems.
The Silicon Valley startup with a $4.5 billion valuation is offering cash payments to former employees who agree to waive their right to sue.
The $4.5 billion startup allowed salespeople to act as insurance brokers in at least seven states despite lacking the licenses to do so.
Zenefits, a Silicon Valley startup, rented the luxurious Arizona property as a crash pad for visiting employees. But the days of the "Zenemansion" are coming to an end.
The confidential project would set up a rivalry between Zenefits, a Silicon Valley "unicorn," and some of its partners in the world of business software.
It's one of the fastest-growing business software companies of all time. But a number of its small business customers tell a story that shows the risks of astronomical growth.
The fast-growing human resources software maker is now among the most valuable startups in Silicon Valley. It wants to get even bigger.