Fintech startup Bench is back in the headlines—this time for a fresh round of layoffs just months after it was rescued from collapse. The accounting and tax services company, once valued far higher, was acquired for $9 million last December by San Francisco-based Employer.com after abruptly shutting down.
Now, Bench is shedding more jobs. While the company hasn’t said how many were affected, an internal source estimated that dozens of roles were cut—many from client success and tax advisory teams. Several insiders say most of Bench’s U.S. tax advisors were let go in this round.
Employer.com, the HR tech firm behind the acquisition, acknowledged the layoffs. Its Chief Marketing Officer, Matt Charney, said the decision wasn’t made lightly. He emphasized the company’s appreciation for employees who helped manage customer accounts during the transition.
Bench’s collapse wasn’t sudden—it followed years of high spending and unprofitability. The startup had raised over $110 million in venture capital and another $50 million in debt but never broke even. When the money ran out, it laid off its staff and left thousands of customers without access to their bookkeeping records.
That’s when Employer.com stepped in, acquiring the company in a fire sale. It re-hired a large part of the original workforce and pledged to rebuild the business. But that promise has come with some caveats.
Two current workers and one former employee say most of the team was brought back as contractors—not full-time staff. Many continue to work under 30-day agreements that are renewed monthly. Although Employer.com initially said this would be temporary, that status has largely remained unchanged.
Internally, these contract workers are called “Benchmates.” Some say the company has hinted that most of the workforce will eventually shift overseas. However, Charney denied this, saying the recent cuts are about fixing old inefficiencies—not outsourcing.
Bench is also facing customer issues. Insiders report that many clients left after the April 15 tax deadline. Some were upset because their taxes weren’t filed on time. Others accused Bench of double-billing them for services they had already paid for under the previous ownership. The company responded by saying it honors all prepaid accounts.
Charney admitted that customer churn has increased. But he added that a portion of this was intentional. According to him, Bench was supporting some clients at a loss due to outdated pricing. Letting go of unprofitable accounts, he said, was part of the strategy to fix the business.
Despite these challenges, Employer.com says Bench is still on track for growth. Charney noted that the company plans to expand its product features and eventually increase headcount. For now, though, most of its workers remain on short-term contracts—waiting each month to see if they’ll be renewed.
