Flexport, a digital-oriented freight forwarding company, is cutting its workforce by roughly 15% (about 400 employees) in a bid to control expenditures and achieve profitability. The layoffs are also a result of the company's refocus on its core business operations.
This decision predominantly affects North American R&D staffers, and the impact on customer-facing teams is said to be minimal. As per sources, the layoff predominantly impacts positions such as software engineers and operations associates.
Analyst QuickTake: Rumors about Flexport’s layoffs have been around since last week. Furthermore, this marks Flexport’s third significant layoff phase in just over a year. The company let go of roughly 640 employees in January 2023 and a further 700 in October 2023. Despite the layoffs, Flexport secured a significant funding boost with a USD 260 million investment from Shopify earlier this month, suggesting the company is still looking at ways to grow and expand.
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