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Flexport to layoff its global workforce by 20%

Flexport to layoff its global workforce by 20%

Flexport, a startup specialising in supply-chain software, announced plans to reduce its global workforce by 20%. The company’s senior executive shared a memo stating that layoffs will begin today, October 13, 2023.

According to the memorandum, the company will notify affected employees via email. Additionally, employees in the United States and Canada have been instructed to work from home on Friday, October 13, 2023, unless their work is based at a Flexport warehouse. In the meantime, employees in Asia will be notified of the layoffs on Monday.

The layoffs come on the heels of Ryan Petersen’s return as CEO last month and the subsequent removal of Petersen’s hand-picked successor, Dave Clark. Petersen has claimed repeatedly that Clark, a 23-year Amazon veteran, overspent and overhired at Flexport.

As a result, upon regaining control, Petersen immediately made significant changes to the company’s top leadership, removing several individuals Clark had hired for key positions, including the chief financial officer and the head of human resources. He also cancelled 55 job offers and began efforts to rent out unused office space throughout the country.

The company has stated that it has several compensation packages in place for all affected employees. Employees in the United States will receive nine weeks of severance pay, continued healthcare coverage until the end of the year, immigration assistance, and assistance in finding new job opportunities. Additionally, employees outside of the United States will receive information about their separation packages at a later date.

According to media reports, Flexport had approximately 3,500 employees as of late September.

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