Human resources software firm Zenefits, which has been beset by legal wrangling over its business practices, is about to lose its captain.
The New York Times reported that Zenefits CEO David O. Sacks is leaving the CEO role, possibly to take a position with the transition team of Donald Trump, the president-elect. That possible move, said NYT, comes as the firm is looking to bring on a new chief executive. Sacks, in the meantime, would maintain a role with the company as chairman.
In an interview with NYT, Sacks said that, for Zenefits, “it’s time to find the next leader,” stating that “we’re looking for an experienced operator to partner with me and take the company to the next level.” He did not confirm to NYT the reasons behind the management shakeup, but he did note that he has not had “formal talks” with the transition team.
NYT noted that the past year has been tough on the company, as the human resources firm was not long ago valued at $4 billion. But its founder, Parker Conrad, was ousted from the firm in the wake of scandal: Zenefits had apparently let unlicensed brokers sell health insurance to customers. In addition, the firm had used software that allowed employees to “game” state insurance licensing exams. The implied valuation of the firm more recently stood at about $2 billion.