Home » US business news • US Employment News » Flexport trims headcount by 20 percent
https://www.whatjobs.com/news/usa/us-employment-news/flexport-trims-headcount-by-20-percent
Supply chain software startup Flexport is cutting 20 percent of its global workforce in a new round of layoffs.
The job cuts will start today (Friday, October 13).
Flexport CEO Ryan Petersen informed employees of the move through a memo.
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Petersen had returned as CEO recently, ousting his hand-picked successor, Dave Clark.
He cited overspending and overhiring during Clark's tenure.
However, documents and sources suggested that Petersen and Flexport's board influenced decisions.
This leadership turmoil has been a source of recent turbulence within the company.
The layoffs are part of Petersen's efforts to reshape the organization.
Read More: Juniper Networks Cuts More Than 400 Headcounts
This also involved removing key recruits brought in by Clark and the CFO and HR chief.
Petersen's changes also included rescinding 55 job offers and exploring the leasing of unused office space across the country.
Petersen said after the job cuts Flexport will be “in a great position to take advantage of the opportunities in front of us to return to profitability as soon as the end of next year.”
He added that the move will “not impact the customer experience.”
He said the company’s focus remains on providing quality services, such as quote-to-invoice and shipment milestone accuracy.
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Flexport currently employs approximately 3,500 people.
A company spokesperson didn’t disclose the exact number of job losses.
US and Canadian employees were directed to work from home when the layoffs began, except those working in Flexport warehouses.
Asian-based employees will receive notifications about the layoffs on Monday, October 16.
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For affected US employees, the company offers a nine-week severance package.
They’ll receive continued healthcare coverage through the end of the year, immigration support, and job recruiting assistance.
Employees outside the US will receive details about their separation packages later.
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