Another supply chain company now announces unexpected layoffs, this time trimming 15% of its workforce to cut back on costs.
Flexport says it looks to cut back on costs and return to profitability.
The headcount reduction primarily impacted research and development positions in North America, and will have a minimal impact on customer-facing teams, they added.
Impacted workers include software engineers and operations associates, according to LinkedIn posts published today from several former Flexport employees.
Rumors of layoffs had been circulating online after The Information reported last week Flexport would lay off staff “in the coming weeks.”
When asked about the rumors, Flexport declined to comment, reports Supply Chain Dive.
This marks the logistics company’s third major round of layoffs over the past year or so, including 20% in December 2022 due to a macroeconomic downturn and another 20% in October to help cut costs.
The job cuts have also come as Flexport shifts directions to refocus on its core business and pursues profitability, with Ryan Petersen back as CEO.
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Also Read: A Massive Furniture Company Now Lays Off 1,650 Employees
Other Layoff News Today
A payments company now announces unexpected layoffs of its global workforce, affecting 2,500 jobs, according to the CEO.
PayPal plans to cut a whopping 2,500 roles, which equates to 9% of the company’s global workforce, TheGuardian reports.
In a letter to staff sent on Tuesday, the newly appointed CEO Alex Chriss, said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year.
The staff that will be affected are expected to be notified by the end of the week.
“We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth,” Chriss wrote in the letter.
The company did not immediately respond to a request for comment.
In November, Chriss said he expected to increase revenue outside of purely transaction-related volume and pledged to turn the fintech firm leaner by reducing its cost base.
Though the announcement had helped rally the stock after third-quarter results, analysts have remained focused on PayPal’s margins in recent quarters.
The company’s low-margin business products have risen strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple.
Last week, the payments firm announced it was launching new artificial intelligence-driven products as well as a one-click checkout feature.
Meanwhile, rival Block, led by the Twitter co-founder Jack Dorsey, also began to cut jobs this week as part of its previously disclosed plans to trim headcount and reduce costs.
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