Flexport, a major player in the logistics sector, is reportedly considering a substantial reduction in its workforce, contemplating around 20 percent of its employees facing potential layoffs in the coming weeks.
This move comes on the heels of the company’s prior workforce downsizing of 20 percent, affecting roughly 600 workers in October 2023. Led by CEO Ryan Petersen, Flexport aims to secure profitability without jeopardising its financial stability.
Petersen had previously highlighted the company’s commitment to delivering top-notch global logistics and technology solutions. Despite recent financial backing, including a $260 million funding infusion from Shopify, Flexport grapples with the uncertainties inherent in the ever-evolving global trade landscape.
The company had acquired Shopify’s logistics business in May, a strategic move resulting in a 13 percent stake exchange. Flexport’s potential workforce reduction underscores the ongoing challenges in the industry and the company’s proactive approach to ensuring long-term sustainability.
