Flexport is considering cutting part of its corporate workforce following the sudden departure Wednesday of its CEO, Dave Clark.
During the company's internal town-hall meeting held Thursday, Flexport executives told employees that cost-cutting measures were on the way, possibly including job cuts, but they didn't specify the size or when they would take place, according to multiple sources who asked to remain anonymous so they could speak freely. The overarching message was that Flexport was spending too much money, and the company needed to focus more on helping customers, the sources said.
These discussions add more uncertainty to a workforce already in disarray. Clark, who previously worked at Amazon, announced his sudden resignation on Wednesday, citing the desire of the Flexport founder and former CEO, Ryan Petersen, to return to the helm. On Thursday, Petersen hinted at more changes through a series of posts on X, formerly known as Twitter, saying, "Strategic Plan, Day 1: Make better decisions!"
Earlier this year, Flexport reduced 20% of its workforce, in large part because of an economic downturn and lower freight volume. On Thursday, Flexport also fired four of the top executives Clark brought in from Amazon, The Information reported.
Shortly after Clark's resignation Wednesday, Petersen posted on X the note he shared with the rest of the company. In it, he emphasized the need to return to profitability and focus on customers' needs.
"It's clear that important changes are needed to sustain our growth and return to profitability. Flexport sits at a crossroad where the choice is either to spend our way out of the current downturn in global logistics or pursue a path that gets us back to profitability quickly. The board and I agree that operational excellence and profitability in the near-term is the right path," Petersen wrote in his note to employees.
"The main way we grow is by talking to customers. Flexport leaders must proactively engage with our clients to understand their needs and then lead our teams to solve their problems and earn their trust," he added.
Some employees have already been notified of their jobs getting cut, a person familiar with the process says.
A Flexport representative was not immediately available to comment.
Got a tip?
Contact the reporter Eugene Kim via the encrypted-messaging apps Signal or Telegram (+1-650-942-3061) or email (ekim@insider.com). Reach out using a nonwork device. Check out Insider's source guide for other tips on sharing information securely.
Contact the reporter Madeline Stone at mstone@insider.com, mlstone@protonmail.com, or on the secure messaging app Signal at (646) 889-2143 using a nonwork phone.
