Nuked 
Hey there, tech fans! Nuked here, ready to spill the tea on some wild times at fintech startup Bench. Grab your coffee because this story has it all: buyouts, layoffs, and a bumpy road to revival.
Bench, once a promising accounting and tax startup, faced a huge upheaval after a fire sale acquisition last December. The company confirmed a major round of layoffs, cutting dozens of jobs from its roughly 300-person team. Key departments like client success and tax services were hit hardest, wiping out much of the U.S.-based tax advisory squad.
The buyer, Employer.com, a San Francisco HR tech company, explained these decisions weren’t made lightly. Their CMO, Matt Charney, praised the hard work of the employees who helped keep Bench’s accounts afloat. Under previous ownership, Bench raised over $110 million in venture capital and $50 million in debt but never reached profitability, burning through cash before abruptly shutting down and leaving thousands of customers in the lurch.
Luckily, Employer.com swooped in, acquiring Bench for a modest $9 million. They rehired most of the staff and vowed to breathe new life into the startup, saving it from complete collapse. However, many former employees revealed that most workers are now independent contractors, stuck renewing 30-day contracts month-to-month instead of enjoying full-time employment. This was described as a temporary patch to onboard the team swiftly.
Despite these workforce hurdles, Bench faces ongoing challenges. Customer churn spiked after tax season, partly due to missed deadlines and allegations of being charged twice for certain services—claims Bench denies, insisting all prepaid services are honored. Charney noted that some customer losses were deliberate, weeding out unprofitable accounts tied to legacy pricing problems from before Employer.com’s takeover.
Going forward, Bench plans to enhance its features and grow its team, aiming to turn its fate around. So, while the startup’s journey has been rough, the next chapter might just be its comeback story!
