Flexport told employees to expect cost-cutting and possibly job cuts, a day after its CEO’s sudden departure

  • Flexport told employees Thursday to expect cost-cutting and a possible reduction in workforce.
  • Flexport CEO Dave Clark, who previously worked at Amazon, resigned on Wednesday.
  • Flexport founder Ryan Petersen said the company needs changes to “return to profitability.”

Following the abrupt departure of CEO Dave Clark on Wednesday, Flexport is considering laying off a portion of its corporate workforce.

According to multiple sources, during the company’s internal town hall meeting on Thursday, Flexport executives told employees that cost-cutting measures, including potential job cuts, were on the way, but they didn’t specify the size or when they would take effect. According to the people, the overarching message was that Flexport was spending too much money and that the company should focus more on helping customers.

These discussions add to the already-disorganized workforce. Clark, who previously worked for Amazon, abruptly resigned on Wednesday, citing Flexport founder and former CEO Ryan Petersen’s desire to return to the helm. Petersen hinted at more changes in a series of messages on X, formerly known as Twitter, on Thursday, saying, “Strategic Plan, Day 1: Make better decisions!”

Flexport laid off 20% of its workforce earlier this year, owing largely to the economic downturn and lower freight volume. Flexport also fired four of the top executives Clark hired from Amazon on Thursday, according to The Information.

Petersen shared the note he shared with the rest of the company on X shortly after Clark’s resignation on Wednesday. In it, he emphasized the importance of returning to profitability and focusing on the needs of customers.

“It is obvious that significant changes are required to sustain our growth and return to profitability.” Flexport is at a crossroads: either spend our way out of the current global logistics downturn, or pursue a path that returns us to profitability quickly. “The board and I agree that focusing on operational excellence and profitability in the short term is the best course of action,” Petersen wrote in his note to employees.

“Talking to customers is the primary way we grow.” “Flexport leaders must engage with our clients proactively to understand their needs, and then lead our teams to solve their problems and earn their trust,” he added.

According to a source familiar with the situation, some employees have already been notified that their jobs will be eliminated.

A Flexport representative was not immediately available for comment.

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