Flexport, a supply chain software startup, is eliminating approximately 20% of its staff, according to CNBC. On Thursday, Ryan Petersen, the CEO, communicated the news in a memo sent to employees. The job losses come in the wake of recent turbulence at the company, beginning after Petersen unexpectedly terminated Dave Clark, whom he had personally selected to succeed him.
Flexport, a supply chain software startup, intends to reduce its global workforce by around 20% beginning Friday, October 13, according to CNBC, which has seen a copy of the memo CEO Ryan Petersen sent to staff Thursday. A Flexport spokesperson referred CNBC to a company blog post on the matter, but declined to disclose Flexport's total headcount. Pitchbook data suggests the company had approximately 3,500 employees as of the end of September.Following the dismissal of hand-picked successor Dave Clark last month, Petersen made several changes to the firm's leadership, besides rescinding 55 job offers and leasing out unoccupied office space. In the blog post, Petersen stated the cuts will fix the company's financials for the end of next year and not impact its customer service.In the memo, U.S. and Canadian staff were told to work from home on Friday, while those in Asia will be informed of layoffs on Monday. For U.S. personnel, nine weeks of severance, health care coverage until the end of December, immigration support and job recruiting assistance will be provided. Outside of the U.S., individual separation packages will be shared at a later date. Petersen concluded by saying the team is resilient and determined to do what is necessary to achieve its mission.
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