Logistics startup Flexport said it would cut about 20 percent of its global workforce as its new chief executive refocuses the business amid a sharp downturn in shipping activity.
“Lower volumes, combined with improved efficiencies as a result of new organizational and operational structures, means we are overstaffed in a variety of roles across the company,” Flexport said in a statement.
The privately held company, which is one of the most valuable logistics startups, declined to say the number of employees affected by the layoffs.
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The move comes at a time when many big tech companies and venture capital-backed startups are either freezing hiring or laying off employees amid economic uncertainty.
The leaving package for affected workers in the U.S. includes 12 weeks severance, six months extended healthcare and accelerated equity vesting, Flexport said.
The company also said its plan to add about 400 engineers to double its technical team in 2023 remained intact.
That move was spearheaded by Dave Clark who joined Flexport in September as co-chief executive after two decades at Amazon.com.
“The current slowdown in volume gives us time to focus on building our technology bench while the economy lags,” Flexport said.
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Logistics startup Flexport said it would cut about 20 percent of its global workforce as its new chief executive refocuses the business amid a sharp downturn in shipping activity.
“Lower volumes, combined with improved efficiencies as a result of new organizational and operational structures, means we are overstaffed in a variety of roles across the company,” Flexport said in a statement.
The privately held company, which is one of the most valuable logistics startups, declined to say the number of employees affected by the layoffs.
Read Also
The move comes at a time when many big tech companies and venture capital-backed startups are either freezing hiring or laying off employees amid economic uncertainty.
The leaving package for affected workers in the U.S. includes 12 weeks severance, six months extended healthcare and accelerated equity vesting, Flexport said.
The company also said its plan to add about 400 engineers to double its technical team in 2023 remained intact.
That move was spearheaded by Dave Clark who joined Flexport in September as co-chief executive after two decades at Amazon.com.
“The current slowdown in volume gives us time to focus on building our technology bench while the economy lags,” Flexport said.
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