Supply chain logistics company Flexport is reportedly embarking on another sweeping round of job cuts.
The firm plans to cut almost 20% of its staff — about 500 workers – in a bid to regain its momentum after a dip in shipping demand, The Wall Street Journal (WSJ) reported Friday (Jan. 26), citing a source familiar with the matter.
PYMNTS has contacted Flexport for comment but has not yet received a reply.
These apparent layoffs follow another 20% reduction of staff in October, part of a larger restructuring plan at the company, which itself followed a major leadership change.
Since his return, Petersen has overhauled the company’s leadership team, with the job cuts leading to a 25% reduction in expenses.
As noted here in October, Peterson has set a goal of turning a profit by the end of this year or early 2025. This could hold up Flexport’s plans for an initial public offering (IPO), although Petersen remains committed to some day taking the company public.
The WSJ report said that many of these changes follow a drop in freight rates which impacted the company. Flexport serves as a go-between, purchasing space on containerships, and earns profits on the spread between shipping company list prices and the rates it charges clients.
Last year brought reports — which Flexport dismissed as untrue — that the company was working to rebuild trust following complaints from customers.
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