Flexport, a prominent logistics company, is reportedly considering another round of layoffs despite securing a significant amount of funding. The firm, which has garnered $2.7 billion in venture and debt funding, is said to be contemplating the elimination of approximately 20% of its workforce in the coming weeks. This potential move comes after the company’s previous workforce reduction in October, which saw a 20% cut affecting around 600 employees. Flexport’s communications head, Liyan Chen, refrained from providing comments on the recent report.
Key Takeaway
Despite recent funding and partnerships, Flexport is reportedly considering a significant reduction in its workforce, adding to the challenges faced by tech workers in the current economic climate.
Challenging Times for Tech Workers
The possibility of further layoffs at Flexport adds to the challenges faced by tech workers in January. The tech industry has witnessed a significant number of job cuts, with both established companies and startups collectively eliminating tens of thousands of positions. While such workforce reductions are not uncommon in the current climate, the timing of this potential decision by Flexport is noteworthy.
Recent Funding and Partnerships
Interestingly, just last week, Flexport announced an additional $260 million in funding from Shopify, further strengthening the ties between the two companies. This funding round follows a previous partnership between the two, wherein Shopify divested its logistics business to Flexport in exchange for a 13% stake in the company. Notably, Flexport’s investors include prominent names such as Softbank and Andreessen Horowitz.
