Flexport will cut 20% of its jobs, with affected staff in Europe and North America receiving emails in the coming hours, and those in Asia tomorrow.
The letter to employees from co-CEOs Dave Clark and Ryan Petersen opens: “We start the new year with more optimism than ever about the future of Flexport.
But it continues: “We also have to make the tough decisions necessary to set ourselves up for long-term success.
“We are, overall, in a good position, but we are not immune to the macroeconomic slowdown that has affected businesses around the world. Our customers have been impacted by these challenging conditions, which has resulted in a reduction in our volume forecast through 2023.
“Lower volumes, combined with improved efficiency through new organizational and operational structures, means we are overstaffed in a variety of roles across the business.”
The letter adds that the company will reduce its global workforce by around 20%, or some 600 people.
Jobs are being created in all departments, in all geographies, but the company will continue to operate in all of its regions, with no offices closed.
US personnel leaving the company will receive “12 weeks of layoff, six months of extended health care, a 2022 bonus, accelerated stock vesting, including the removal of the vesting cliff for those who have six months or more of seniority, immigration support, and the ability to opt into our alumni talent pool to help with future employment opportunities.”
There are no details for other regions.
But the company is also creating jobs – some 350 to 400 engineers and software engineers, as it focuses on efficiency and technology. He said: “2023 is going to bring extraordinary speed – we are doubling down on our software engineering talent and moving to single-threaded business organizations to build world-class products faster, and we will continue to invest in providing best-in-class operational execution for our customers.
Flexport said the slowdown would give it time to develop its technology, so when the economy recovers “we need to be nimble, fiscally responsible and focused on building fast with operational excellence.”
(The full letter to employees can be read here.)