CEO suspended for not paying staff for months
The Goldman Sachs-backed Slync.io first ran into issues in May.
Why You Should Care
Slync.io has not paid some members of staff in full for months.
The company has now told staff that it is restructuring.
Uncover the twist and turns of this bizarre situation.
Although many profess to love their job, the nature of work is transactional. So when employees aren’t paid there are serious repercussions.
Issues with paying staff have been making the headlines in recent weeks as the likes of EY and Asda encountered payroll challenges that led to employee outrage.
After employees weren’t paid in full since 10 May, supply-chain-tech startup Slync.io has been forced to suspend its CEO Chris Kirchner. In fact, some employees are still waiting for their wages.
The company which raised $60 million in a Series B funding round in early 2021, is now being steered by Tim Kehoe, chief of staff at Slync.io, on a temporary basis.
Kehoe informed employees of the leadership change on a Zoom call on Monday, but issues still remain in the organization.
Slync’s payment plans
During the call, employees did not get clarity on when they would receive the money that they are owed. Slync.io also appears to be restructuring, but there was not a great deal of information given to employees.
Part of the issue that the company faces is that it owes tens of thousands of dollars to numerous payroll vendors, according to Forbes.
Despite a lack of detail, Kehoe claims that the board will be addressing the company’s liquidity problems.
However, many employees are not convinced by this promise. One anonymous employee told Insider: “We’ve been promised that a million times.”
The impact of these false promises has been felt by current and former employees alike, a former employee said: “I will honestly be lucky to make it until my first paycheck in my new position.”
Slync.io has seen a host of resignations since the payments stopped and this includes its chief marketing officer, chief revenue officer, and chief financial officer.
Kehoe has told staff that they are expected to return to work immediately. Unfortunately, a number of employees have lost access to internal systems like email and Slack.
Krincher has not spoken publicly about his suspension, but in recent months he has been seen playing in the LIV Golf Invitational and in the JP McManus Pro-Am in Ireland.
Time will tell whether Slync.io can deliver on its promises and whether Krincher will once again lead the company.
UNLEASH has reached out to Slync.io but has not yet had a response.
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Dan combines his first-hand experience alongside the latest news and opinions in the HR Technology space.