Bench, accounting and tax startups, which were purchased in fire sales last December, have made a significant holiday. It confirmed the Tech Crunch.
The bench did not specify how many people were affected, but a person who works there estimates that the bench is eliminating dozens of positions – this is a large part of about 300 people working for the company.
Directors such as the client’s success and tax services had a direct impact on departments, a person directly aware of the matter, in which the Tech Crunch told the Bench -based tax advisory team in the United States.
San Francisco HR Tech Company, Amar.com, who bought a bench last year, told the decision to cut the tech cranch that “was not made lightly.”
“We deeply appreciate the partnership of our employees who have worked diligently to maintain these accounts,” said Emperor.com’s CMO Mat Charney.
Under the previous ownership, the bench collected more than $ 110 million and more than $ 50 million in financing VC, but never made a profit. The company burned its cash and suddenly stopped, left its entire staff and left thousands of consumers without access to their books. After that, Emperor.com purchased a bench for $ 9 million, re -hiring most of the startup manpower, and promising to restore startups.
The move saved the bench from complete ending.
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But two current bench workers and a former told Tech Crunch that the bench has maintained most of its manpower as independent contractors, and that each month renews his 30 -day contracts as full -time employees. At the time of sale, Emperor.com said this is a temporary move.
They also told the Tech Crunch that the bench had said internally that the majority of its manpower would be living outside North America. However, CMO Charney said the recent deductions reflect the facts of changing the business and resolving the legacy issues instead of being part of any strategic outsourcing move. “
Charney told Tech Crunch that the bench is continuing to find long -term solutions for employees, called the company called “Bench Mate”, but that the structure was the most viable option to shut down people quickly.
The current and former benchmate told Tech Crunch that in addition to the formation of its manpower, the bench faced other challenges. For example, after the tax season expire on April 15, a large number of bench users were shared. The bench was also unable to terminate many consumers’ taxes on time, a man told Tech Crunch directly to the matter.
Some frustrated consumers also alleged that the bench accused the people of the services they had already paid under ownership. –
Charney told Tech Crunch that when some users have gone, it was a deliberate move to leave partially non -profit consumers.
“When we have seen an increase in the customer’s Mandor, an important part of it has been deliberately and necessary,” Charney said. “Over time, before the acquisition of our bench, Legacy pricing and service decisions have helped damage consumer subsets.”
Charney added that moving forward, the bench plans to increase both the features and the head count.
For more, read the employer.com Full statement on the bench release here.
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