Convoy, a Seattle-based digital trucking marketplace has announced its third round of layoffs in the past year, along with the closure of its Atlanta office. The company’s CEO, Dan Lewis, attributed the cuts to a shift in the company’s customer service model, as well as efforts to improve overall business efficiency and achieve profitability. The previous layoffs occurred in June and October of 2021, and the company declined to provide specific details on the number of employees affected in this latest round.
Convoy employs just over 1,000 people, down from the 1,300 employees reported in April 2022 when it secured a $260 million investment round at a $3.8 billion valuation. The company’s digital platform facilitates automated transactions between shippers and trucking companies, and it counts major corporations such as Procter & Gamble, Unilever, and Home Depot among its clients.
The layoffs and real estate reduction come as Convoy seeks to automate parts of its customer service model, a move that CEO Dan Lewis said represents a significant step forward in the company’s operations. While the shift will help the company to run a more focused and efficient business, it will also change the staffing needs, leading to layoffs and office closures. Convoy has previously attracted investments from high-profile backers, including Bill Gates and Jeff Bezos, among others.
Convoy is just one of many tech companies experiencing headcount reductions and other cost-cutting measures in the midst of ongoing economic uncertainty and a broader industry downturn. The company competes with other digital-focused shipping companies such as Uber Freight, as well as traditional brokers that are investing in their own technology. As they battle for a share of the $800 billion U.S. trucking industry, these companies must find ways to streamline operations and reduce costs while maintaining high levels of customer service.