Logistics Startup Flexport Will Trim Hundreds More Jobs
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The once-hot logistics startup Flexport Inc. plans to lay off hundreds of workers, according to a person familiar with the matter — the company’s latest effort to reposition itself during a global shipping industry slowdown.
Flexport will cut less than 20% of employees, said the person, who asked not to be identified because the information is private. The company currently has about 2,600 workers.
The move follows a $260 million investment in Flexport earlier this month from Shopify Inc. in the form of a convertible note. Shopify and Flexport have worked together before: Last year, Flexport bought the e-commerce company’s logistics business.
Flexport is coming off a difficult year. In January of 2023 it cut 20% of staff, and in October cut about 20% more. Also last year, the company ousted CEO Dave Clark and founder Ryan Petersen returned to the helm in a dramatic reshuffling. The change precipitated significant executive churn at the company.
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Flexport’s fortunes had soared during the pandemic as online shopping increased and shipping rates climbed. Since then, freight prices have declined and Silicon Valley startups have stumbled.
The company declined to comment on the jobs cuts. The Information previously reported the layoffs.
San Francisco-based Flexport has raised $2.35 billion, excluding the Shopify deal, and was valued at as much as $8 billion by venture investors, including Founders Fund, Andreessen Horowitz and DST Global.
Bloomberg Beta, the venture-capital arm of Bloomberg LP, is also an investor in Flexport.
