Logistics software startup Flexport is slashing its workforce by 20% in the face of weaker markets, the co-chief executives of the company have confirmed.
The digital freight forwarder said the reductions will be spread across North America, Europe and Asia, the company said. Flexport currently employs more than 3,000 people, according to its LinkedIn page.
“While we are looking forward to what’s to come in 2023, we must also make hard decisions necessary to set us up for long-term success,” said co-CEOs Ryan Petersen and Dave Clark.
“We are overall in a good position, but are not immune to the macroeconomic downturn that has impacted businesses around the world.”
Flexport said its customers have been impacted by these challenging conditions, resulting in a reduction to its volume forecasts through 2023.
“Lower volumes, combined with improved efficiencies as a result of new organizational and operational structures, means we are overstaffed in a variety of roles across the company,” Petersen and Clark said.
“As a result, today we are reducing the size of our organization and we will unfortunately say goodbye to a group of talented Flexporters.”
Flexport said those staff whose role is being eliminated will be notified by email with information specific to them and their exit.
The company said departure support will vary by geography with US employees receiving 12 weeks severance, six months extended healthcare, 2022 bonus payment, immigration support, and the ability to opt into its alumni talent directory to help with future job opportunities.
Despite the job losses, Flexport said it was in the process of “doubling its software engineering talent” and moving to single-threaded business organisations to “build world-class products faster”.
The San Francisco-based company said the current slowdown in volume would give it “time to focus on building our technology bench while the economy lags”.
“Then, as the economy recovers, we will be ready to be the Flexport that we all want to be–the one stop for customers to make the movement of goods around the world easy,” it added.
Just under 12 months ago, Flexport raised $935m in a Series E funding round in a move that valued the company at $8bn.
