Logistics provider Flexport laying off 20% of company workforce

Human ResourcesMoney MattersCompany CultureHigh Tech / High Touch
Written By Jennifer Joslyn

Blame the waning shipping demand. The freight forwarder company that was ripe with capital from large tech-focused venture capital firms has announced that approximately 700 individuals in their workforce are on the brink of being without a job. Based in San Francisco, Flexport is one of many companies involved in the tech industry in some capacity that is partaking in company-wide layoffs this quarter. Co-CEOs Dave Clark and Ryan Petersen posted a memo on the Flexport website explaining the difficult decision and citing reduced shipping volumes and more automated systems available as reasons for the layoffs. In the end, Flexport has far too many employees than it currently needs to operate successfully.

There are several reasons why tech companies may be partaking in company-wide layoffs, including financial reasons, restructuring, mergers and acquisitions, changes in the industry, advancements in automation and AI, and shift to remote work. Salesforce, Amazon, and C.H. Robinson have all announced similar decisions.

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Blame the waning shipping demand.

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Jennifer Joslyn
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