From Fortune Magazine:

Flexport, a digital-focused freight forwarder, had a strong start in 2022 after raising almost $1 billion and gaining unicorn startup status at an $8 billion valuation. However, as of 2023, the company is facing layoffs and an effort to focus on profitability after periods of declining shipping demand, rising interest rates, and CEO drama.

Dave Clark, the former CEO of Amazon’s worldwide consumer division, helped Flexport through a serious growth spurt in 2022. His aggressive hiring and investment in developing technology and logistics operations, however, departed from the current CEO’s goal to simplify global trade. These actions led to an era of excess, so the company’s focus was shifted to becoming more disciplined.

The priority of bolstering profitability has prompted substantial job cuts at Flexport over the past year. The company’s founder, Petersen, returned to the CEO position in September 2023, with a new mindset intent on controlling costs and pursuing strategies to navigate uncertainties in the shipping industry. The company also raised $260 million in an effort to continue building out its logistics platform and boosting confidence in potential customers.

Flexport’s recent financial moves resulted from concerns about the company losing footing, as it previously experienced a period of disruptions and layoffs. With the backing of investors such as Shopify, the company’s aim is to give nervous customers confidence in its stability and the safety of doing business with them. The company’s association with Shopify is highlighting its strategic partnerships as a way to reassure customers.



Read more: Flexport CEO Ryan Petersen explains why he raised $260 million from Shopify