Home Top Stories Flexport is laying off 20% of its workforce

Flexport is laying off 20% of its workforce

Flexport is laying off 20% of its workforce


Ryan Peterson, chief executive officer and founder of Flexport Inc., stands for a photograph at the company’s office in San Francisco, California, U.S., on Wednesday, April 15, 2015.

David Paul Morris | Bloomberg | Getty Images

Supply chain start-up Flexport plans to cut approximately 20% of its global workforce as part of a new round of layoffs that’s expected to begin on Friday, CNBC has learned.

Flexport CEO Ryan Petersen informed employees of the layoffs in a memo Thursday afternoon, according to a copy of the memo viewed by CNBC. The company will inform employees of whether they’re impacted or not via email beginning Friday morning, Petersen wrote.

“Today I have a difficult decision to share: We will reduce the size of our global team by approximately 20% with the process starting tomorrow, Friday, October 13,” Petersen wrote.

The layoffs are the latest cost-cutting move by Petersen, who returned as CEO last month after ousting his hand-picked successor Dave Clark. Petersen claimed repeatedly that Clark, a 23-year veteran of Amazon, overspent and overhired during his tenure at Flexport. But documents viewed by CNBC, and sources close to Clark, showed that Petersen and members of Flexport’s board helped implement decisions that Flexport has suggested were ill-advised.

Since taking back the helm, Petersen quickly overhauled the company’s top ranks, ousting several of Clark’s key recruits, as well as its CFO and HR chief. He also rescinded 55 offer letters and moved to lease out unoccupied office space.

Petersen wrote in the memo that employees in the U.S. and Canada are being directed to work from home on Friday unless they work out of a Flexport warehouse. Staffers based in Asia will be contacted about the layoffs on Monday, according to the memo.

Flexport representatives didn’t immediately respond to a request for comment.

This is a developing story. Check back for updates.


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