Home Tech News Flexport is shedding 20% of its workforce

Flexport is shedding 20% of its workforce


Ryan Peterson, chief government officer and founding father of Flexport Inc., stands for {a photograph} on the firm’s workplace in San Francisco, California, U.S., on Wednesday, April 15, 2015.

David Paul Morris | Bloomberg | Getty Photos

Provide chain start-up Flexport plans to chop roughly 20% of its international workforce as a part of a brand new spherical of layoffs that is anticipated to start on Friday, CNBC has realized.

Flexport CEO Ryan Petersen knowledgeable workers of the layoffs in a memo Thursday afternoon, in line with a replica of the memo considered by CNBC. The corporate will inform workers of whether or not they’re impacted or not by way of e mail starting Friday morning, Petersen wrote.

“As we speak I’ve a troublesome choice to share: We are going to cut back the dimensions of our international group by roughly 20% with the method beginning tomorrow, Friday, October 13,” Petersen wrote.

The layoffs are the most recent cost-cutting transfer by Petersen, who returned as CEO final month after ousting his hand-picked successor Dave Clark. Petersen claimed repeatedly that Clark, a 23-year veteran of Amazon, overspent and overhired throughout his tenure at Flexport. However paperwork considered by CNBC, and sources near Clark, confirmed that Petersen and members of Flexport’s board helped implement selections that Flexport has advised have been ill-advised.

Since taking again the helm, Petersen rapidly overhauled the corporate’s prime ranks, ousting a number of of Clark’s key recruits, in addition to its CFO and HR chief. He additionally rescinded 55 provide letters and moved to lease out unoccupied workplace house.

Petersen wrote within the memo that workers within the U.S. and Canada are being directed to earn a living from home on Friday except they work out of a Flexport warehouse. Staffers based mostly in Asia will likely be contacted in regards to the layoffs on Monday, in line with the memo.

Flexport representatives did not instantly reply to a request for remark.

It is a creating story. Test again for updates.

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