It took less than two years for Zenefits to become one of the hottest startups in Silicon Valley, raising more than $US500 million at a $US4.5 billion valuation.
But a new report by The Wall Street Journal’s Rolfe Winkler suggests the company may be failing to reach its sales goals and lofty expectations — leading investors to mark down the value of the company by nearly half to $US2.34 billion in September.
The report says Zenefits is also on a hiring freeze, after growing its headcount from roughly 500 to 1,640 in a single year. It’s also allegedly cut pay of some of its employees, which led at least 8 executives to leave the company.
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