The weakened health-benefits broker’s will now have 500 employees which is roughly 70% of the 1,600 employees it had in September 2015.
Mr. Fulcher was named CEO on Monday, the third person to lead Zenefits since early 2016. He replaced David Sacks, who took over as CEO a year ago from co-founder Parker Conrad amid slowing revenue growth and regulatory problems. Zenefits stands as an example of startups whose valuations swelled to soaring heights in recent years, propelled by venture capital and aggressive growth targets. In May 2015, just two years after it launched, Zenefits raised $500 million in funding at a valuation of $4.5 billion, a staggering nine times the price investors paid just 11 months prior.