Zenefits, a health insurance startup based in San Francisco, has laid off 250 employees, company CEO David Sacks said, according to a report from The New York Times.
Here are four things to know about the layoffs.
1. The cuts represent about 17 percent of the company's workforce.
2. The cuts primarily affect the Zenefits sales teams.
3. The cuts follow weeks of turmoil at the company. Zenefits co-founder Parker Conrad, stepped down as CEO this month and left the board after it was revealed he had created software intended to defy insurance brokerage guidelines, according to the report. The company also was not in compliance with health insurance regulations in some markets, the report notes.
4. Mr. Sacks attributed the cuts to the company growing too fast, "stretching both our culture and our controls," according to The New York Times. "This reduction enables us to refocus our strategy, rebuild in line with our new company values and grow in a controlled way that will be strategic for our business and beneficial for our customers," he added in an email to employees.