Weak 2023 volume forecast

Flexport is to cut 20% of its jobs, with impacted people receiving emails in the next few hours in Europe and North America, and tomorrow in Asia.

A letter to employees from co-CEOs Dave Clark and Ryan Petersen began with: “We begin the new year with more optimism than ever about Flexport’s future.”

But it went on to say: “While we are looking forward to what’s to come in 2023, we must also make hard decisions necessary to set us up for long-term success.

“We are overall in a good position, but are not immune to the macroeconomic downturn that has impacted businesses around the world. Our customers have been impacted by these challenging conditions, resulting in a reduction to our volume forecasts through 2023.

“Lower volumes, combined with improved efficiencies as a result of new organisational and operational structures, means we are overstaffed in a variety of roles across the company.”

The letter added that the company would reduce in size, impacting about 20% of its global workforce, some 600 people, under the restructuring.