The article discusses the story of Bench, an accounting startup that was acquired by Employer.com after its sudden shutdown just before Christmas. Here are the key points:
- Bench’s demise: The company shut down without warning, leaving hundreds of employees and thousands of customers in limbo.
- Reasons for shutdown: The article suggests that Bench’s struggles with AI-powered accounting and its high burn rate contributed to its downfall.
- Acquisition by Employer.com: Just before Christmas, Employer.com acquired Bench, promising to revive the company and honor customer contracts.
- Uncertainty around sustainability: Despite the acquisition, there are concerns about whether Employer.com can sustain Bench’s business model, given its lack of experience in accounting.
- Former staff being rehired on 30-day contracts: At least some former Bench employees are being offered temporary contracts to ensure continuity, raising questions about their long-term prospects.
- Concerns about customer service: Customers may face disruptions as Employer.com takes over, and it’s unclear whether they will have access to the same level of service.
The article raises important questions about the sustainability of AI-powered accounting startups like Bench and highlights the challenges of sudden company takeovers.
