Flexport, the San Francisco-based freight forwarder, is planning to trim up to 30 percent of its workforce.
A source said it’s part of its efforts to address financial difficulties stemming from a sharp drop in revenue.
Founder Ryan Petersen is taking measures to restore the company to profitability following recent challenges.
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A spokesperson said: “Ryan has been very transparent in the need to drive the growth and cost discipline required to return Flexport to profitability.
“We will do so in a way that doesn’t impact customer service and our ability to help grow our customers’ businesses,
The layoffs are expected to occur by the end of the month.
This move follows a series of significant changes at Flexport, including Ryan Petersen’s sudden return as CEO about a month ago.
It followed the abrupt departure of CEO Dave Clark, a former senior executive at Amazon.com.Â
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The differences in the company’s direction and spending on new operations attributed to Clark’s departure.
During the past four weeks, at least 11 executives have either left or been let go from Flexport.
Dave Clark appointed most of these executives.
Among them was Teresa Carlson, a former Microsoft and Amazon executive who joined Flexport as President and Chief Commercial Officer in January.Â
Additionally, several job offers extended to new hires were rescinded.
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Earlier in January, Flexport reduced its global workforce by approximately 20 percent, affecting over 600 employees.
It was in response to declining freight demand and a strategic shift toward expanding its supply-chain services.
Since then, the company has onboarded several hundred software engineers.
Flexport’s financial struggles are due to decreased shipping volumes and declining freight prices, which have hurt its revenue in the current year.
