(Reuters) – U.S. logistics startup Flexport plans to lay off up to 30% of its workforce by the end of the month, sources said on Thursday.
The Information had earlier reported the plan, citing a person close to the company.
The layoff represents about 1,000 people based on a total headcount of around 3,300, the report said.
The planned layoffs are part of a series of cost-cutting moves by the company.
Flexport said CEO Ryan Petersen “has been very transparent in the need to drive the growth and cost discipline required to return Flexport to profitability,” without commenting on specific details regarding employee reductions.
Petersen recently resumed his role as CEO, replacing former Amazon.com executive Dave Clark. Petersen credited Clark with creating the products for Flexport, but said the company lost focus on customers and expenses during his year as CEO.
San Francisco-based Flexport last month unveiled e-commerce tools like the Revolution self-service offering and its Flexport+ subscription service aiming to reduce costs and automate much of the work that small businesses do on multiple spreadsheets.
Flexport is one of the most valuable U.S. logistics startups with $2.3 billion in funding so far and an $8 billion valuation. In June, the company completed its purchase of Shopify Logistics, adding business-to-business distribution and last mile delivery to the company’s portfolio of services.
(Reporting by Krystal Hu in San Francisco and Devika Nair in Bengaluru; Additional reporting by Dimpal Gulwani; Editing by Muralikumar Anantharaman)
