Zenefits is in the market for a new CEO.
On Friday evening, CEO David Sacks confirmed an earlier report from The Information that the San Francisco startup, which provides free human resources software to businesses and sells them insurance, is beginning to look for a new person to take over the job.
“Ten months ago, the Board asked me to step into the CEO role at Zenefits amidst a regulatory crisis,” Sacks said in a series of tweets.
“Now it is time to open a search for permanent CEO of the company,” he added. “I will stay involved as Chairman, focusing on product and strategy.”
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Sacks became CEO of Zenefits in February following the discovery that co-founder Parker Conrad had built software that let employees skirt California insurance licensing requirements. Conrad was forced to resign and Sacks, who had been COO for a year, took over. He was previously an executive at PayPal and later co-founded workplace communication company Yammer, which he sold to Microsoft in 2012 for $1.2 billion.
As chief executive of Zenefits, Sacks has been vocal about the company’s commitment to follow regulations and shed its rowdy culture. So far, Zenefits has settled compliance issues with several states, including Arizona, Delaware, South Carolina, and most recently, California. It also laid off about 17% of its workforce, or 250 employees, in February and another 9% in June. That same month, Zenefits also slashed its valuation from $4.5 billion to $2 billion.