Fintech benches layoffs while others are still working monthly

The bench is a massive layoff of accounting and tax startups purchased on a large sale last December.

The bench has not specified how many people are affected, but there is one there who works there that estimates dozens of positions are being eliminated on the bench - a large part of the people about 300 people working for the company.

Departments such as client success and tax services were directly affected, and one person was directly familiar with TechCrunch, the issue told TechCrunch that most U.S.-based tax consulting teams were cancelled.

Embliser.com, a San Francisco human resources technology company that bought the bench last year, told TechCrunch that the decision “was not easy to go.”

“We are very grateful for the contributions of the employees who work hard to maintain these accounts,” said employer Matt Charney.

Under previous ownership, Bench raised more than $110 million in venture capital, with more than $50 million in debt, but never reached profitability. The company burned through cash, closed suddenly, layed off all its employees and left thousands of customers without access to its books. Then, embliser.com poured in, bought benches for $9 million, rehired most of the startup's workforce and promised to restore the startup.

This move prevents the bench from a complete collapse.

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However, two substitute workers and one former worker have told TechCrunch that the bench keeps most of its workforce as an independent contractor, renewing a 30-day contract per month instead of hiring them as full-time employees. At the time of sale, Employers Network said it was a temporary measure.

The people also told TechCrunch, which Bench said internally that most of its workforce would be located outside North America. However, CMO Charney said the recent cuts reflect “the reality of turning the business around and solving legacy issues, rather than being part of any strategic outsourcing plan.”

Charney told TechCrunch that the bench continues to explore long-term solutions for employees, which the company calls it a “substitute partner,” but the structure is the most viable option to get people on board quickly after the shutdown.

The current and former class classes told TechCrunch that benches face other challenges besides building their workforce. They said, for example, after the tax season ended on April 15, many bench customers were stirring. A backup person told TechCrunch one person was also unable to complete taxes for many clients on time.

Some frustrated clients also claim that the bench charges people services they have paid for under prior ownership. (The bench told TechCrunch at the time that it respects all prepaid services.)

Charney told TechCrunch that although some customers left, this part was intentional abandoning unprofitable customers.

“Although we’ve seen churn, a large part of it was intentional and necessary,” Channey said. “Over time, traditional pricing and repair decisions made before we got the bench resulted in a portion of the customers being supported by the loss.”

Charney added that on the bench, Bench plans to enhance features and numbers.

For more information, read the full statement of employees on bench layoffs here.

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