Zenefits Chops 250 Employees On Regulatory Woes

Zenefits, the human resources automation software which had been locked in a battle with the state of Utah over how it linked its free software to insurance sales, is laying off roughly 250 employees, according to a memo that leaked from the company on Friday. The memo was sent by David Sacks, the company's new CEO. Those layoffs are related to regulatory issues in California, which has been investigating Zenefits for padding certification hours of employees. Those are the same types of issues which Utah's insurance department had been pursuing against Zenefits over the last couple of years, until the state specifically passed a law allowing the company to operate in the state. In that case, Zenefit's successfully ran a campaign against Utah saying that it was not "business friendly" for attempting to keep the service out of the state.