Zenefits, the online HR platform that ousted its founding CEO recently as a part of a regulatory investigation regarding insurance sales (where the company makes its money), has announced more layoffs, an additional 9% of the company’s workforce, around 100 people. 250 were cut in February, as part of a revamp of sales and operations, following David Sacks — the former CEO of Yammer — assuming the helm as CEO. The company was valued at $4.5 billion in a raise of capital last year, and has disrupted the market for HR tools. Sacks has also jumped on the Zappos’ model of offering money for employees to leave in this reduction of force, he calls this ‘the Offer’. Sacks say he is making a new version of Zenefits: Z2. He spoke with William Alden of Buzzfeed, saying
The company isn’t making The Offer because we don’t want you. We do want you, but we want the best of you.
Dropbox CEO Drew Houston says that the company has achieved a milestone that investors will like: the company is free cash flow positive, meaning operating cash minus capital expenditures. This will set the stage for an easier IPO, which is anticipated.