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$2 billion startup Zenefits CEO David Sacks could step down, less than a year after taking over

Dec 3, 2016, 06:31 IST

Zenefits CEO David SacksREUTERS/Beck Diefenbach

Zenefits, the $2 billion HR software maker, is in the process of looking for a new CEO who could potentially replace David Sacks, who took over the helm less than a year ago, according to The Information.

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The report says that Sacks is already in the process of determining "what senior talent the company needs to get to the next level." If he does step down, Sacks could take on another role like senior executive chairman at the company, the report said.

The news comes as a bit of a surprise. Sacks just took the CEO position in February after founder/ex-CEO Parker Conrad was found to be responsible for developing illegal training software. The company has been involved in a number of legal issues throughout the year, but seems to have settled down a bit after launching a new version of its product called "Z2" in October.

In a statement sent to Business Insider, Zenefits acknowledged that Sacks was exploring changes at the company's upper ranks, without directly confirming or denying that Sacks could step down from the CEO job:

"David Sacks is still the CEO of Zenefits and remains very committed to the company. The Board has total faith in him and appreciates the turn-around that he has executed. As you know, this is not a role that David sought, but he accepted it without any compensation at the request of the Board to get the company past a crisis. Now that the crisis is over, David is leading a process to determine what senior talent the company needs to get to the next level. David has always put the company first, and if there's any change in his role, you will hear that directly from him."

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