Flexport, a global supply chain solutions provider, is eliminating management positions and reducing the size of its fulfillment team, according to an internal memo first seen by The Information.
Flexport CEO Ryan Petersen told staff on Wednesday the company still had work to do to hit its growth and profitability goals and needed to “move faster to get there.”
“These changes will increase our velocity in that direction, and set us up for a successful next few years of profitable growth,” according to the memo.
The memo did not specify how many employees will be laid off. Flexport declined to comment.
A number of Flexport employees went on social media Wednesday to announce they were part of the latest round of layoffs.
“Well, my time at Flexport has ended due to another round of layoffs. Looking for a new role to thrive in and a company to grow with,” William Grant, who worked as a materials procurement analyst at Flexport, posted on LinkedIn.
Patrick Demian, a Flexport senior software engineer, also posted on LinkedIn, “What a long strange trip it’s been. Starting at Deliverr Inc., then being acquired by Shopify, then re-acquired by Flexport, then multiple rounds of layoffs. The latest one finally got me out, but not out for the count.”
Flexport was founded in 2013 by Petersen and is based in San Francisco. Since its founding, Flexport has raised $2.35 billion in capital and has been valued at as much as $8 billion by venture capitalists.
The latest round of job cuts is the fourth over the last two years for a company that at one time had 3,200 employees. In January, Flexport reduced its workforce by 20%, about 500 employees.
In January and October 2023, the company had two rounds of layoffs totaling 1,300 workers. In September 2023, Flexport’s board dismissed CEO Dave Clark.
Last year, Flexport acquired e-commerce giant Shopify’s logistics arm, marking the company’s expansion into e-commerce fulfillment and last-mile delivery. In January, Flexport secured a $260 million investment from Shopify aimed at providing a boost during a challenging period in freight.
