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

Bench, the accounting and tax startup that was acquired in a fire sale last December, has recently undergone a significant round of layoffs, as confirmed by DailyTech.

While Bench did not disclose the exact number of employees affected, insiders estimate that dozens of positions have been eliminated, impacting a substantial portion of the company’s workforce of around 300 employees.

Departments such as client success and tax services have been directly affected, with reports indicating that a majority of Bench’s U.S.-based tax advisory team has been let go.

Employer.com, the San Francisco HR tech company that acquired Bench, stated that the decision to implement these layoffs was a difficult one.

Under previous ownership, Bench received significant VC funding and debt financing but failed to achieve profitability. Following a sudden shutdown, Employer.com acquired Bench for $9 million, rehiring most of the staff with the goal of revitalizing the startup.

While the acquisition saved Bench from collapse, current and former employees have raised concerns about the company’s workforce being primarily composed of independent contractors on short-term contracts.

Despite challenges faced by Bench, such as customer churn and delayed tax filings, Employer.com remains committed to exploring long-term solutions for its employees, known as “Benchmates.”

Moving forward, Bench plans to expand its features and workforce, aiming to address legacy issues and drive growth.

For more details, you can refer to Employer.com’s full statement on the recent layoffs at Bench.

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