Global supply chain solutions provider Flexport may be contemplating another round of layoffs in the coming weeks, according to sources familiar with the matter.
Initially reported Friday by business publication The Information, insiders disclosed that the company is considering a workforce reduction of approximately 20%, potentially affecting close to 500 employees.
FreightWaves contacted Flexport for a statement, but it had not responded as of publication deadline.
In October, Flexport performed its second 2023 layoff, letting go of nearly 20% of its staff at the time, or approximately 600 employees.
CEO Ryan Petersen attributed the earlier layoffs to overspending and said he is determined to restore profitability by the end of 2024, primarily through the growth of the core forwarding business.
The company also laid off 700 employees in January 2023.
Last Friday, Flexport secured a $260 million investment from e-commerce giant Shopify, providing a significant boost after a challenging freight period.
Flexport raises $260M from Shopify
Petersen announced the funding via X (formerly Twitter), stating that Shopify provided the funds “on an uncapped convertible note.”
The move follows Flexport’s acquisition of Shopify’s logistics arm in the previous year, marking the company’s expansion into e-commerce fulfillment and last-mile delivery.
As part of the earlier deal, Shopify gained a 13% equity stake in Flexport and a seat on its board. The recent funding builds on the close collaboration between the two companies, with Shopify having previously invested in Flexport during a 2022 funding round.
This is a developing story.
FreightTech experts: 2024 is the year for laggards to catch up
Project44 v. FourKites: The FreightTech case that questions Illinois defamation law
3 things the logistics industry can learn from Brad Jacobs’ new book
donald banwart
I had a stock broker hound me for weeks to buy stock in this company as an IPO and I knew it was a bad deal. Did the ever go public ?
Mel
I have a core vendor that switched to these clowns and wow, the drop in service was extreme and immediate. I’m calling it, they will be out of business by the end of the year. Tech bros are way outta their league playing with transportation and high on the smell of their own farts.
Cashy
Again?????? This company gets more and more weird. One minute everything is great and @we have a massive and growing pile of spare cash” (to the moon!!!) and then they lay off ANOTHER 20%.
I don’t get it.