- 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.”
Flexport is considering cutting part of its corporate workforce, following Wednesday’s sudden departure of 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, including potential job cuts, but they didn’t specify the size or when they would take place, according to multiple sources. The overarching message was that Flexport was spending too much money, and the company needs to focus more on helping customers, the people 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 Flexport founder and former CEO Ryan Petersen’s desire to return to the helm. On Thursday, Petersen hinted at more changes through a series of messages 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 due to 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 on 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, according to a person familiar with the matter.
A Flexport spokesperson was not immediately available to comment.
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