ShiftPixy CEO fired; CFO resigns amid major acquisition
FLORIDA, UNITED STATES — The Miami-based gig economy platform ShiftPixy has fired CEO Scott Absher amid an internal investigation. At the same time, its CFO, Patrice Launay, resigned amid a major leadership shakeup in the company.
The developments come shortly after the company announced a potential $150 million acquisition of TurboScale, an AI technology company specializing in scalable GPU cloud infrastructure and AI model deployment.
Executive changes and restructuring
Although the board of directors did not disclose the specific allegations against Absher, the decision was described in a U.S. Securities and Exchange Commission (SEC) filing as being “in the best interests of the company and its shareholders.”
In a related development, Launay resigned from his position on October 18, just days before Absher’s termination. The company appointed Jonathan Feldman, a partner at the law firm Phang & Feldman, as Chief Restructuring Officer effective October 21. Feldman will oversee the company’s ongoing operations as it navigates this leadership transition.
Strategic expansion amid uncertainty
The leadership changes coincide with ShiftPixy’s expansion plans, including a non-binding letter of intent to acquire TurboScale for $150 million. According to a filing with the U.S. SEC, the deal is not yet final and remains subject to negotiations, board approval, and other closing conditions.
“The completion of the acquisition is subject to negotiation of definitive agreements and customary closing conditions… There is no assurance the acquisition will be completed on the terms contemplated in the LOI, or at all,” the company stated in the SEC filing.
The market has responded cautiously to these developments, with ShiftPixy’s shares trading at $8.22, showing a 6% decline.
Prior to these events, Absher maintained significant control over the company, holding an 88% stake as of December 2023. The company’s operations have also faced some challenges, including an employment discrimination complaint filed by former COO Amanda Murphy with the California Civil Rights Department.
Company profile and operations
ShiftPixy, which relocated its headquarters from California to Miami in 2021, specializes in connecting businesses with temporary workers and gig economy participants, particularly in the retail and hospitality sectors.
The company provides employment administrative services through two main subsidiaries, ShiftPixy Staffing and ReThink Human Capital Management.
The company reported revenues of $13.8 million in the first nine months of its fiscal year ending May 31.