Reports suggest freight forwarder Flexport could layoff as much as 30% of its workforce as it looks to drive cost discipline.
Technology publication The Information reported that the forwarder was looking to layoff around 1,000 people, with newswire Reuters later reporting sources quoting the same figure.
Flexport told Air Cargo News that it wouldn't comment on specific details with regard to employee reduction but issued the following statement.
"[Chief executive] Ryan [Petersen] has been very transparent in the need to drive the growth and cost discipline required to return Flexport to profitability. We will do so in a way that doesn’t impact customer service and our ability to help grow our customers’ businesses."
Earlier this year, the forwarder announced it would cut its workforce by 20% as it was overstaffed.
The move comes after a tumultuous few weeks for the freight forwarder.
In September, it was announced that ex-Amazon logistics leader Dave Clark would leave the role of chief executive to be replaced by the firm's founder and former boss Ryan Petersen.
In a post on social media platform X, Petersen said important changes were needed to sustain growth and return to profitability.
“Flexport sits at a crossroads where the choice is either spend our way out of the current downturn in global logistics or pursue a path that gets us back to profitability quickly,” he said.
“The board and I agree that operational excellence and profitability in the near term in the short term is the right path.”
Clark said his departure came as the company looked to focus on its core freight business.
The next day, Petersen withdrew job offers for more than 75 people that he said were given jobs during a "hiring freeze".
“It’s messed up. But no way around it, we have had a hiring freeze for months I have no ideas why more than 75 people were signed to join,” he said.
In the following weeks, several other senior people left the company and earlier this week Clark said on x that the forwarder was facing a challenging time.
https://www.aircargonews.net/people/reports-flexport-cfo-out/
https://www.aircargonews.net/freight-forwarder/flexport-withdraws-more-than-75-job-offers/
https://www.aircargonews.net/freight-forwarder/flexport-withdraws-more-than-75-job-offers/
