Veho, the delivery startup, reduces corporate workforce.

Veho, a package delivery company, has made significant changes to its corporate structure.

The company has confirmed that it had to lay off 19% of its employees, which amounts to approximately 65 jobs. According to The Information, these cutbacks came after Veho experienced a staggering revenue increase of nearly 90% in 2023.

“We conducted a reorganization of our corporate team to improve efficiencies, accelerate our path to profitability and be able to invest more in areas that directly impact our clients’ needs and our growth,”

This statement was released by Veho in response to questions about the recent changes within the company.

Veho, founded in 2016 by Itamar Zur and Fred Cook, specializes in the last-mile section of delivery, specifically the process of getting packages from fulfillment centers directly to the customer’s doorstep. Despite experiencing huge growth in early 2022, Veho encountered some challenges in the following year.

While the company had seen a 40% increase in revenue and a 20% growth in its customer base from the previous year, plans to expand its employee count from 500 to 2,000 by the end of 2022 were put on hold. The effects of the pandemic gave Veho an unexpected boost, resulting in a series of successful funding rounds.

Veho raised a total of $170 million in Series B funding, led by Tiger Global Management, during the height of the pandemic, which raised the company’s valuation to $1.5 billion. This was just two months after securing an additional $125 million in Series A funding, pushing Veho into the prestigious unicorn territory. General Catalyst was the lead investor in that round.

With a significant amount of venture-backed funding at its disposal, Veho aggressively expanded its reach and welcomed new executives to its team. In 2023, the company entered into 11 New England markets and established partnerships with major retailers such as Kroger, Saks, Nordstrom, Misfits Market, HelloFresh, and Nespresso. At this time, Veho had a total of 910 employees across its corporate and warehouse teams, with plans to hire more staff.

However, there were challenges along the way. The Information reported that Veho had to lay off some of its customer and driver support staff and outsource those jobs overseas. In March, Chief Commercial Officer, Eric Swanson, left the company according to his LinkedIn profile. In December, Veho announced the appointment of Deborah Surrette, a former vice president of sales at Oracle, as Swanson’s replacement. Although Chief Revenue Officer, Brian McDevitt, still lists Veho as his employer on his social media profiles, The Information reported that he too has left the company.

The logistics industry is facing many challenges including increased freight rates and consolidation. The future of Veho remains uncertain, but the company remains optimistic. They have assured TechCrunch that their financial position is strong and that they continue to build on their momentum and success from the record-breaking 2023 peak season.