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Ryan Petersen, chief executive officer of Flexport, participates in a panel discussion during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Wednesday, May 4, 2022.
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Supply chain software startup Flexport plans to cut approximately 20% of its global workforce as part of a new round of layoffs that’s expected to begin on Friday, CNBC has learned.
Flexport CEO Ryan Petersen sent a note to staffers Thursday afternoon informing them of the job cuts, according to a copy of the memo viewed by CNBC. The company will inform employees of whether they’re impacted or not via email beginning Friday morning, Petersen wrote.
“Today I have a difficult decision to share: We will reduce the size of our global team by approximately 20% with the process starting tomorrow, Friday, October 13,” Petersen wrote.
A Flexport spokesperson pointed CNBC to a company blog post confirming the layoffs.
The layoffs add to recent turmoil at the company since Petersen returned as CEO last month after abruptly ousting his hand-picked successor Dave Clark. Petersen claimed repeatedly that Clark, a 23-year veteran of Amazon, overspent and overhired during his tenure at Flexport. But documents viewed by CNBC, and sources close to Clark, showed that Petersen and members of Flexport’s board helped implement decisions that Flexport has suggested were ill-advised.
Since taking back the helm, Petersen quickly overhauled the company’s top ranks, ousting several of Clark’s key recruits, as well as its CFO and HR chief. He also rescinded 55 offer letters and moved to lease out unoccupied office space.
Petersen wrote in the memo that employees in the U.S. and Canada are being directed to work from home on Friday unless they work out of a Flexport warehouse. Staffers based in Asia will be contacted about the layoffs on Monday, according to the memo.
This is a developing story. Check back for updates.
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