Flexport, the embattled San Francisco freight technology company, is laying off around 30% of its remaining staff, a person familiar with the matter told The San Francisco Standard.
This caps off an especially brutal month for the shipping logistics firm, which has weathered a mass executive exodus, a tumultuous power struggle between CEOs and industry furor after rescinding job offers to dozens of new hires.
A Flexport spokesperson declined to comment on the particulars of the layoffs, but this is the second round of major job cuts at the company in the past year. In January, the company laid off around 20% of its workforce, equivalent to around 640 employees, according to CNBC.
The second round of job cuts, expected to happen before the end of the month, would likely be even steeper.
Flexport’s services—optimizing shipping and freight processes for businesses—grew more in-demand during the pandemic. But with the boom came a conflicted vision of Flexport’s future.
Dave Clark, an Amazon executive who was brought on last year as co-CEO with founder Ryan Petersen to aid the company’s expansion plans and later transitioned into a sole CEO capacity, abruptly exited Flexport last month. Shortly after, at least 11 executives, a large chunk of whom were brought on by Clark, according to the Wall Street Journal, also left the company.
Petersen was reportedly responsible for Clark’s abrupt ouster and has taken back the role of CEO with a stated focus on cost discipline. The two executives have since been engaged in a battle in the press and on social media for control over the narrative.
“Ryan has been very transparent in the need to drive the growth and cost discipline required to return Flexport to profitability,” a Flexport spokesperson said in a statement. “We will do so in a way that doesn’t impact customer service and our ability to help grow our customers’ businesses.”
Flexport, which has raised some $2.3 billion over its history, snagged a major $8 billion valuation in 2022. A report last month published by market intelligence firm CB Insights found that its current valuation could have declined by 80%.