(Bloomberg) -- Zenefits, the HR tech startup embroiled in aregulatory compliance scandal, is making another wave of staffcuts. The company said it will eliminate 106 jobs, accounting forabout 9 percent of staff.

Related: Zenefits was the perfect startup: Then itself-disrupted

The San Francisco startup, which makes corporate software andsells health insurance to companies, will close its salesdepartment in Arizona and reorganize its operations group, calledOps. The cuts come just a few months after Zenefits dismissed 250 people, about17 percent of the workforce at the time.

“This is a painful decision because we have a lot of greatsalespeople in Arizona and talented people in the Ops organizationwho will no longer be with us,” David Sacks, the chief executiveofficer of Zenefits, wrote in an email to employees. “But it is theright thing to do.”

The fall of Zenefits has come almost as quickly as its rise.

Related: Zenefits: A story of confidence, culture,and resignation

After becoming a Silicon Valley darling valued at $4.5 billionby investors, Zenefits said in February that it was under pressurefrom state regulators for compliance issues. Employees had beenusing software that would have allowed them to skirt trainingrequirements.

Parker Conrad, the founding CEO, resigned during the controversyunder pressure from the board. Sacks, then chief operating officer,took his place and promised to clean things up.

In his message to employees on Tuesday, Sacks said the company’srevenue had “not decreased” and that its annual recurring revenuewas still more than $60 million.

He offered remaining employees who joined before his promotionto CEO on Feb. 8 -- a date Sacks calls “Day One” -- a two-monthseverance package and four months of health insurance if theychoose to leave.

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.