Zenefits, the start-up firm that received $500 million in investor funds to revolutionize employee benefits administration and human resources, has a new CEO who hopes to end the HR nightmare.

In June, a company official sent an email to employees at its Silicon Valley headquarters that continued drinking, smoking and having sex in a stairwell could jeopardize the Zenefit’s home office lease.

Last month, then-CEO Parker Conrad was said to have resigned following allegations that the firm was unlicensed brokers to sell insurance in many states. Some reports allege Conrad was fired.

And now, the company has announced it is handing pink slips to 250 employees, 17% of its workforce.

David Sacks

In a statement, current CEO David Sacks, former executive at Microsoft who joined Zenefits as COO several years ago, said the reduction in force will allow Zenefits to regain its footing.

“This reduction enables us to refocus our strategy, rebuild in line with our new company values and grow in a controlled way that will be strategic for our business and beneficial for our customers,” Sacks said in a statement.

As part of his first actions at Zenefits, Sacks has banned alcohol from its headquarters, and is seeking to regain the trust of regulators by emphasizing legal compliance.

Zenefits had anticipated revenue of $100 million for 2015, but instead ended the year closer to $60 million.