Flexport is cutting 20% of employees, 4 months after Amazon boss Dave Clark took over the buzzy supply chain startup. Read the full layoff memo.

Flexport co-CEOs Ryan Petersen (pictured) and Dave Clark told their 3,000 employees that the startup is understaffed due to declining transaction volumes.Reuters/Arnd Wiegmann

  • Flexport on Wednesday began the process of laying off about 20% of its global workforce.

  • Co-CEOs Dave Clark and Ryan Petersen told staff they “need to be agile.”

  • Read the full message to Flexport’s nearly 3,000 employees below.

Flexport, a supply chain startup valued at $8 billion, told employees Wednesday it will lay off 20% of its workforce as a result of a global trade recession and a new, more efficient corporate structure. Told.

According to a message sent to Flexport employees from Flexport’s co-CEOs, Ryan Petersen, who founded the company in 2013, and Dave Clark, who joined Flexport in September after 20 years at Amazon, the reductions are expected to reach around the world. from the office of

Flexport is an intermediary between carriers, such as shipping companies, airlines and freight companies, and companies that move goods. A unicorn startup has raised billions of dollars promising to bring more technology and transparency to his chain of opaque supply.

Flexport makes money by facilitating the movement of these cargoes, so when the volume of cargo moving around the world decreases, so does its revenue.

In a letter to employees, the co-CEOs said, “The reduction in production, coupled with the efficiencies that have resulted from the new organizational and operational structure, has led to overstaffing in various roles throughout the company. means

The company laid off a series of layoffs in early 2020 when trade slumped as the spread of COVID-19 threatened its supply chain. What followed was a boom for nearly every supply chain service provider, including Flexport. But that cargo fire hose is now a trickle, and many logistics companies are right-sizing their workforces to adapt to new market realities.

Last year, Flexport announced that former Amazon Worldwide Consumer CEO Dave Clark would replace founder and CEO Ryan Petersen. The two now serve as co-CEOs as Petersen transitions to the role of executive chairman.

After raising a $935 million Series E round in February and taking Flexport’s valuation to $8 billion, Petersen recently told The Verge’s Decoder podcast that the company has $1.2 billion in cash in its bank. said there is Clarke’s mission is to grow and expand Flexport’s influence.

Since taking office, Clarke has joined high-ranking former Amazon executives, including Tim Collins as senior vice president of operations, Darcy Henry as the new chief human resources officer, and most recently Teresa Carlson as chief commercial officer and president. I brought some

Read the full message from Clark and Petersen to all Flexport employees here.

Read the original article on Business Insider

Leave a Reply

Your email address will not be published. Required fields are marked *