Flexport, a startup specialising in supply-chain software, announced its plans to lay off its global staff by 20 per cent. The senior executive of the company shared a memorandum that mentioned that the layoffs will begin today, 13 October, 2023.
The memorandum stated that the company will inform affected employees through emails. Furthermore, the memo explained that employees in the US and Canada have been instructed to work from home on Friday, October 13, 2023, unless their work is based at a Flexport warehouse. Meanwhile, employees located in Asia will receive notifications regarding the layoffs on Monday.
The job cuts come amidst recent upheaval at the company, following the return of Ryan Petersen, CEO, last month, and subsequent removal of Petersen’s hand-picked successor, Dave Clark. Petersen has repeatedly alleged that Clark, a 23-year Amazon veteran, overspent and overhired during his time at Flexport.
Therefore, after reassuming control, Petersen promptly made significant changes to the company’s top leadership, removing several individuals Clark had brought in for key positions, including the chief financial officer and the head-HR. He also cancelled 55 job offers and initiated efforts to rent out unused office space across various locations in the country.
The company has mentioned about several compensation packages it has in place for all the affected employees. Employees in the US will receive nine weeks of severance pay, continued healthcare coverage until the end of the year, assistance with immigration matters, and support in finding new job opportunities. Additionally, the staff members outside of the US will receive information about their separation packages at a later time.
According to media reports, as of late September, Flexport had approximately 3,500 employees.