Namely, an eight-and-a-half-year-old, New York-based company that sells payroll, talent management and other HR services to mid-size businesses across the U.S. via subscription software, has let go of upwards of 40% of its roughly 400 employees.
The cuts are across the board, from high-ranking staffers, including a CFO who was brought on almost exactly two years ago, and a chief security officer who has spent just the last year with the company, to its entire customer success team.
In a call earlier today, Namely CEO Larry Dunivan said the company had reduced executive pay five weeks ago, hoping to avoid layoffs, but that the coronavirus and its impact on the business made that impossible. He also shared the difficulties of running a startup right now that depends largely on small- and medium-size businesses, noting that even though Namely’s customers sign up for between one- and three-year-long contracts — they also pay an additional amount for a minimum number of employees — many of those customers are finding it difficult to fulfill those contracts at the moment.
He pointed to one client who has numerous yoga studios and who earlier this year employed 500 people but …read more
Source: Tech Crunch