▼ Summary
– Bench, acquired by Employer.com, has undergone significant staff reductions, affecting key departments like client success and tax services, impacting dozens of positions in its 300-person workforce.
– The restructuring eliminated most of Bench’s U.S.-based tax advisory team, with Employer.com acknowledging the contributions of departing employees but not disclosing specific roles affected.
– Bench faced financial collapse under previous management despite raising over $160 million, leading to its acquisition by Employer.com for $9 million, which rehired much of the staff
– Most employees are monthly contractors with renewable agreements, a structure initially described as temporary by Employer.com to facilitate rapid rehiring post-acquisition.
– Bench is addressing operational challenges, including customer attrition and service issues, while strategically shedding unprofitable accounts and planning future growth in staffing and product capabilities.
Bench, the accounting software startup acquired in a distressed sale last year, has implemented another round of staff reductions as it struggles to stabilize operations under new ownership. While the company hasn’t disclosed exact numbers, sources indicate dozens of positions were eliminated across key departments including client success and tax services – representing a substantial portion of its approximately 300-person workforce.
The San Francisco-based fintech, now owned by HR technology firm Employer.com, confirmed the restructuring but declined to provide specifics about affected roles. “This decision wasn’t made lightly,” said Employer.com CMO Matt Charney, acknowledging the contributions of departing employees. The cuts reportedly eliminated most of Bench’s U.S.-based tax advisory team according to internal sources.
Bench’s turbulent journey includes raising over $160 million in combined venture funding and debt before collapsing under previous management. The company’s abrupt shutdown last December left thousands of small business clients without access to their financial records until Employer.com acquired the assets for $9 million and rehired much of the staff.
Current and former employees reveal ongoing challenges with the company’s employment structure. Rather than traditional full-time positions, most workers operate as monthly contractors with 30-day renewable agreements – a practice Employer.com initially described as temporary. Company leadership maintains this arrangement allowed rapid rehiring after the acquisition.
Operational difficulties have compounded workforce challenges. Sources describe significant customer attrition following the recent tax season, with some clients reportedly receiving delayed tax filings. Additional complaints emerged about duplicate charges for services previously paid under old ownership, though Bench maintains it honors all prepaid agreements.
Charney framed some customer losses as strategic, explaining: “Legacy pricing structures supported certain clients at a loss.” The company claims to be intentionally shedding unprofitable accounts while developing plans for future growth in both staffing and product capabilities.
The layoffs come as Bench attempts to redefine its workforce strategy. While internal communications suggested expanding offshore operations, leadership denies this drove recent cuts. “We’re addressing legacy issues, not pursuing outsourcing,” Charney clarified, adding that permanent employment solutions remain under consideration.
For the fintech sector, Bench’s struggles highlight the difficulties of turnaround acquisitions and the delicate balance between cost management and service quality. The company’s ability to stabilize operations while retaining both talent and customers will likely determine its long-term viability under new ownership.
(Source: TechCrunch)
