Flexport conducts record staff cuts
2023.01.11 14:39
Flexport conducts record staff cuts
By Tiffany Smith
Budrigannews.com – As its new chief executive refocuses the business amid a sharp decline in shipping activity, logistics startup Flexport announced on Wednesday that it would cut about 20% of its global workforce.
“We are overstaffed in a variety of roles across the company,” Flexport stated in a message to employees. “Lower volumes, combined with improved efficiencies as a result of new organizational and operational structures, means we are overstaffed.”
After raising more than $2 billion in funding, the privately held company, which is now one of the most valuable logistics startups, declined to disclose the number of employees affected by the layoffs. According to data aggregation companies, Flexport has at least 3,000 employees, which would necessitate at least 600 job cuts.
Because it is a freight forwarder with all necessary licenses, Flexport is able to oversee complete sea, air, rail, and road freight shipments. Its rivals incorporate Kuehne + Nagel, DHL and Joined Package Administration (NYSE:).
As a result of the global recession, transportation and technology companies, as well as startups supported by venture capital, are either freezing hiring or laying off employees.
According to Flexport, the company’s leave package for workers in the United States includes accelerated equity vesting, six months of extended healthcare, and 12 weeks of severance pay.
Additionally, the company stated that its plan to hire approximately 400 engineers in order to double its technical workforce in 2023 was unaltered.
Dave Clark, who spent two decades at Amazon.com (NASDAQ:) before joining Flexport in September as co-chief executive, was the driving force behind that move.
Flexport stated, “The current volume slowdown gives us time to focus on building our technology bench while the economy lags.”
