Logistics company Flexport is reportedly planning additional layoffs, around 20 per cent of its workforce.
According to a report in The Information, Flexport is likely to trim its workforce in the next few weeks. Flexport in October last year slashed the company’s workforce by 20 per cent — affecting about 600 workers.
“It would mark the SoftBank-backed logistics startup’s third major round of cuts in just over a year,” the report noted.
The company had approximately 2,600 employees after October job cuts. CEO Ryan Petersen had said that with this decision, “we’ll be able to get back to profitability without raising prices or placing our fortress balance sheet at risk.”
“Instead, our path to profitability runs through delivering outstanding global logistics and technology solutions that solve customer problems,” he had said in a blog post.
Last week, Flexport said it raised an additional $260 million in funding from Shopify.
“Flexport raised $260 million on an uncapped convertible note from Shopify. Thank you @tobi and your entire team for this tremendous vote of confidence in our business and partnership,” Petersen posted on X.
“Our fortress balance sheet continues to be one of our most strategic assets as we navigate the uncertain waters of global trade in the 21st century in pursuit of this vision,” he added. Back in May, Shopify sold its logistics business to Flexport in exchange for a 13 per cent stake in the company.