It’s been a few weeks of pain for workers at Hillsboro, Oregon-based SureID, Inc.. A leading provider of identity authentication, background screening, and identity management and enforcement, SureID announced that it laid off at least 60 employees a day after it sent many of its top executives packing. Including this latest round of cutbacks, SureID has eliminated almost half of its employees this spring.
In May, SureID quietly replaced its chief executive officer after the company lost a major contract with the U.S. Navy. In April, the U.S. Navy ceased using SureID after military inspectors found that unauthorized people could gain access to naval installations.
In addition to Steve Larson, founder of SureID, being replaced as CEO, the company also jettisoned a substantial number of employees. SureID did not announce how many people lost their jobs or how many of those cuts took place in Oregon, but estimates put the number between 160 and 200.
The layoffs continued in early June, when SureID eliminated as many as 12 executive and managerial positions. Some of Wednesday’s departures include Chief Marketing Officer Doug Wheeler, Vice President Janine Carnel, Marketing Director Aaron Cohen, Sales Director Cash Best, Operations Director Ray Larson, and Chief Information Officer Abrar Ahmed.
The upheaval continued as the company eliminated as many as 60 more staff members on June 8, a day after sending many of its top executives packing. Despite generating more than $40.0 million annually in revenue, privately held SureID is not paying laid-off workers severance. Out-of-work employees will receive health insurance through the end of June and be paid out on unused vacation time.
Once a major employer in Hillsboro, the company had 545 workers in 2015, but that number has been sliced in half since then. According to employees, the company removed all water coolers, coffee makers, and hot chocolate. Workers have been encouraged to bring their own bottled water from home.
In 2015, SureID borrowed as much as $25.0 million from Goldman Sachs Group Inc (NYSE:GS). But it is now thought that the company burned through that money very quickly. Current SureID employees say Goldman Sachs now has personnel onsite in Hillsboro overseeing the company’s finances. Many insiders believe additional cuts are coming.
“SureID upheaval continues with dozens more layoffs,” The Oregonian, June 8, 2017.
“SureID in crisis – several top executives out,” The Oregonian, June 8, 2017.
“SureID CEO out after setbacks, cutbacks, “The Oregonian, June 6, 2017.
“Navy ditches access card system for tens of thousands of workers,” The San Diego Union-Tribune, April 17, 2017.