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Flexport to cut 500 jobs as shipping demand slows
https://www.whatjobs.com/news/usa/us-employment-news/flexport-to-cut-500-jobs-as-shipping-demand-slows
By Nithya Bose in Business News, posted January 29, 2024
Flexport is to reduce its workforce by nearly 20 percent, or nearly 500 employees, as it navigates a downturn in shipping demand.
This move marks the second major staff reduction for the San Francisco-based company.
In October, the freight forwarding firm cut 20 percent of its workforce in areas like software development.
Flexport announced a significant $260 million investment from Shopify, an e-commerce services provider.
Flexport underwent major shifts following the return of founder Ryan Petersen as CEO in September,
He replaced Dave Clark, an ex-Amazon.com executive.
Disagreements over business strategy and spending prompted the leadership change.
Flexport, functioning as a broker between shipping lines and customers, has been affected by declining freight rates.
Petersen is focusing on steering the company back to profitability, aiming for a return to profit by the end of 2024.
The company, valued at $8 billion as of February 2022, has disrupted traditional shipping.
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Flexport has faced challenges despite its aspirations, with revenues falling due to decreased shipping demand and prices.
In response, it has expanded through acquisitions.
These included the technology of the defunct digital freight firm Convoy in November, enhancing its US trucking operations.
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