In a statement to staff, Flexport Co-CEOs Dave Clark and Ryan Petersen stated that the company is not immune to the macroeconomic slump and that it must make difficult decisions to prepare for long-term success.
According to the memo, Flexport is in the midst of increasing its software engineering skills and making operational adjustments to produce products faster.
Flexport Chief Financial Officer Kenny Wagers told PYMNTS’ Karen Webster in a December interview that freight and shipping stakeholders are more motivated to enhance their processes after the supply chain snags that caused them so many headaches over the last several years.
However, as PYMNTS reported in October, a massive shift in demand momentum has prompted shipping companies to brace for a slowdown in what would normally be a busy season for ocean vessels transporting products to merchants worldwide.
There were now empty containers and over-crowded warehouses where there had been supply chain bottlenecks and inventory shortages during the outbreak.
According to Layoffs.fyi, other tech companies have been impacted by the macroeconomic slowdown and lay off 153,000 people in 2022, up from 15,000 in 2021 and 80,000 between March and December 2020.
Amazon announced 18,000 job cuts in the new year, while Coinbase announced 950 job cuts.
