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According to sources, U.S. logistics startup Flexport is set to lay off around 30% of its workforce by the end of this month. The plan was initially reported by The Information, which cited an insider familiar with the matter.

The projected layoff would affect approximately 1,000 employees, accounting for about 30% of Flexport’s total headcount of around 3,300, as stated in the report.

These upcoming job cuts are part of a broader effort by the company to reduce costs. In recent statements, Flexport emphasized the need for growth and cost discipline to restore profitability. However, specific details regarding the employee reductions were not disclosed.

Flexport’s CEO, ​Ryan Petersen, who recently resumed his role, credited former Amazon executive ​Dave Clark for developing key products at Flexport. However, Petersen also acknowledged that under Clark’s tenure, the company lost sight of customer focus and financial management.

Last month, Flexport, headquartered in ​San Francisco, introduced new e-commerce tools, including the Revolution self-service offering and the Flexport+ subscription service. These initiatives aim to streamline operations, reduce expenses, and automate the manual tasks often performed by small businesses across multiple spreadsheets.

Flexport has garnered significant attention in the logistics industry and boasts impressive funding of $2.3 billion, with a current valuation of $8 billion. In June, the company expanded its portfolio of services through the acquisition of Shopify Logistics, enhancing its capabilities in business-to-business distribution and last-mile delivery.