CNBC has discovered that Flexport let go of its CFO and its HR leader has stepped down. This follows the unexpected ousting of Dave Clark as CEO a short while ago. Sources with knowledge of the situation say Flexport will be announcing more job cuts in the near future.
Approximately three weeks after Ryan Petersen, Founder of Flexport, was forced to take back the reigns as CEO and removed Dave Clark, the company has dismissed its CFO and seen the Human Resources chief resigned. According to sources with knowledge of the situation, Flexport informed Kenny Wagers of his dismissal last week and his last day is Friday. These sources, who wish to remain anonymous, also mentioned that company insider Stuart Leung is likely going to be appointed as the new CFO. Leung has been with Flexport for seven years in various operations, logistics, and finance roles and is known as a close companion of Petersen's.
At the beginning of the year, to reduce expenses, Flexport laid off approximately 20% of their workforce, or 640 employees. To further trim costs, the company is expected to announce more layoffs in the coming weeks. Prior to the Clark situation, company executives had been working on an IPO timeline and were targeting a 2025 debut, according to an internal document seen by CNBC.
Flexport's press representative confirmed these personnel changes as well as highlighting that Michael Brown has taken on a role as Head of Restructuring and CEO Initiatives. However, the spokesperson refused to comment on any further possible layoffs. In addition to expressing appreciation for Wager's contributions, they also wished Jennifer Boden, the recently departed VP of People Tech and Employee Experience, all the best for her future endeavors.
Flexport, a decade old, was established as a digitally powered freight forwarder and further branched out to be an end-to-end supply chain services company, having acquired Deliverr from Shopify in May. Its notable investors include Peter Thiel's Founders Fund, Andreessen Horowitz, and SoftBank. COVID-19's considerable effect on global freight movements has notably impacted the software startup's profits.
Regarding the Clark drama, Petersen publicly disapproved of his plans for business growth and rescinded 55 offer letters, as well as considering office leasing options. In addition, Clark had brought in a number of Amazon executives who have since been dismissed, such as Teresa Carlson, EVP of Global Operations; Darcie Henry, the former VP of People Tech and Employee Experience; and Kelly Cheeseman, VP and Chief of Staff.
— CNBC's Rohan Goswami contributed to this report.WATCH: Flexport CEO Petersen on company's plan to reinvest profits.
Comentários