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Zenefits CEO says about 10 percent of employees voluntarily leave

David Sacks
David Paul Morris | Bloomberg | Getty Images
David Sacks

Zenefits CEO David Sacks said about 10 percent of employees have voluntarily departed, taking the software company up on an offer put in place last week.

In a series of tweets on Monday afternoon, Sacks said that he's "so proud of the 90% who have recommitted to the new Zenefits."

Sacks took over as CEO of Zenefits in February, after the company's founder Parker Conrad was fired because of improprieties, including pushing his salespeople to skirt licensing laws for selling health insurance.

Last week, Sacks announced a second round of layoffs and also said that any employee hired before Feb. 8 could willingly leave the company and receive two months of severance and four months of subsidized health coverage.

In what Sacks described as "The Offer," he told employees that he wanted people who wanted to be there. "We want you protoyping a great idea at Hackday," he wrote in the memo to employees on June 14. "We want you staying late to help out on a project."

Sacks gave his roughly 1,000 employees until last Thursday, June 16, to make their decision.

"It really is a new company now: new values, mission, leadership, and focus on compliance," Sacks wrote in one of the tweets Monday. "Employees deserved a choice. They made it well."

Just last year, Zenefits was one of Silicon Valley's most promising start-ups, raising capital at a $4.5 billion valuation. The company offers free financial and human resources software to businesses and gets paid by insurance providers to act as a broker with its large roster of customers.

Sacks eliminated the company's enterprise efforts, focusing instead on small and medium-sized businesses.