Flexport layoffs will impact 20% of staff at the supply chain software and logistics startup, CEO Ryan Petersen (pictured, top of page) wrote in an email to Flexport staff. The layoffs surfaced one month after numerous executive suite changes at the company.
Flexport's global logistics software platform helps customers to automate their supply chains. An associated Flexport.org website focuses on social and environmental impact, and features a carbon calculator to help users estimate emissions from their Flexport-oriented shipments.
Here's a timeline tracking Flexport's rise and recent challenges:
2013: Company founded.
February 2022 - Late-Stage Funding: Raised $935 million in Series E funding at an $8 billion valuation -- right around the time that startup valuation multiples were peaking. Key investors include Andreessen Horowitz and Michael Dell’s MSD Partners, and includes a strategic investment from Shopify. Existing investors including DST Global, Founders Fund, SoftBank’s Vision Fund I and former Greylock VC Kevin Kwok also participated in the round, CNBC noted. Total funding at the company since inception is roughly $2.3 billion.
September 2022 - New CEO: Hired Amazon veteran Dave Clark as CEO. Clark, in turn, hired multiple executives.
September 2023 - Falling Valuation: Flexport's valuation had fallen roughly 80% to $1.4 billion to $1.6 billion, CB Insights estimated.
October 2023 - More Layoffs: The company cut roughly 20% of staff. The company had 3,509 employees listed on LinkedIn as of Friday, October 13, 2023. The company's actual headcount figures are undisclosed.
Flexport Pursues Profitability: The cuts provide Flexport with the opportunity to "return to profitability as soon as the end of next year," Petersen said in a note. In the meantime, the company has more than $1 billion in net cash to fund operations.
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