Bench Announces Layoffs Following Acquisition
Accounting and tax software startup Bench has confirmed layoffs affecting a significant portion of its workforce. This comes just months after the company was acquired by HR tech firm Employer.com in a fire sale following a near shutdown in December 2024.
Layoffs Impact Client Success and Tax Teams
While the exact number of affected employees remains undisclosed, sources estimate dozens of positions were eliminated, primarily in client success and tax services. A source revealed that most of Bench's U.S.-based tax advisory team was impacted.
Employer.com CMO Matt Charney stated the decision "was not made lightly" and expressed appreciation for the contributions of impacted employees.
We deeply appreciate the contributions of our employees who have worked diligently to maintain these accounts.
Bench's Tumultuous Journey
Bench, which raised over $110 million in venture capital and $50 million in debt, struggled to achieve profitability. The company abruptly shut down in late 2024, leaving thousands of customers without access to their financial data. Employer.com subsequently acquired Bench for $9 million, rehiring a majority of the workforce and pledging to revive the startup.
Contractor Status and Future Plans
Sources indicate that many Bench employees were retained as independent contractors on month-to-month contracts, rather than as full-time employees. While Employer.com initially described this as a temporary measure, the recent layoffs raise questions about the long-term employment strategy.
Charney attributed the layoffs to "the realities of turning around the business and addressing legacy issues," rather than outsourcing initiatives. He stated that Bench is exploring longer-term solutions for its employees, referred to as "Benchmates."
Challenges Remain for Bench
Bench continues to face challenges, including customer churn following tax season and reported delays in completing tax filings for some clients. Some customers also alleged being charged for services already paid for under previous ownership, although Bench stated it honors all pre-paid services.
Charney acknowledged increased customer churn but emphasized that some of it was intentional, aiming to shed unprofitable customers acquired under previous pricing models.
Looking ahead, Charney indicated plans to expand both features and headcount. For more information, see Employer.com's full statement on the Bench layoffs.
