Flexport, a global logistics company with a staggering $2.7 billion in venture capital and debt funding, is reportedly preparing to make some major cuts to its workforce.
According to Information, the company is expected to eliminate approximately 20% of its positions within the coming weeks. In an email response to TechCrunch, Flexport’s head of communications, Liyan Chen, declined to comment on the report.
The firm, which specializes in providing freight forwarding and brokerage services, previously announced similar cutbacks in October 2020. This was shortly after founder and CEO, Ryan Petersen, returned to lead the company once again, resulting in a 20% reduction of the workforce, affecting around 600 employees.
If the reports are true, this would add to the month of January’s ongoing struggles for tech employees, as both established companies and startups continue to slash tens of thousands of jobs across the industry. While Flexport, headquartered in San Francisco, wouldn’t be an outlier for making these necessary adjustments, the timing would certainly be notable.
In fact, just last week, Flexport proudly announced securing an additional $260 million in funding through its partnership with Shopify. This arrangement has significantly strengthened the ties between the two companies. In May of 2020, Shopify sold its logistics business to Flexport, gaining a 13% stake in the company.
Among Flexport’s impressive list of investors are industry giants Softbank and Andreessen Horowitz.