Ryan Peterson, chief govt officer and founder of Flexport Inc., stands for {a photograph} on the firm’s workplace in San Francisco, California, U.S., on Wednesday, April 15, 2015.
David Paul Morris | Bloomberg | Getty Images
Supply chain start-up Flexport plans to chop roughly 20% of its international workforce as half of a brand new spherical of layoffs that is anticipated to start on Friday, CNBC has realized.
Flexport CEO Ryan Petersen knowledgeable workers of the layoffs in a memo Thursday afternoon, in response to a replica of the memo seen by CNBC. The firm will inform workers of whether or not they’re impacted or not through e-mail starting Friday morning, Petersen wrote.
“Today I’ve a tough determination to share: We will scale back the dimensions of our international crew by roughly 20% with the method beginning tomorrow, Friday, October 13,” Petersen wrote.
The layoffs are the most recent cost-cutting transfer by Petersen, who returned as CEO final month after ousting his hand-picked successor Dave Clark. Petersen claimed repeatedly that Clark, a 23-year veteran of Amazon, overspent and overhired throughout his tenure at Flexport. But paperwork seen by CNBC, and sources near Clark, confirmed that Petersen and members of Flexport’s board helped implement choices that Flexport has instructed have been ill-advised.
Since taking again the helm, Petersen shortly overhauled the corporate’s prime ranks, ousting a number of of Clark’s key recruits, in addition to its CFO and HR chief. He also rescinded 55 supply letters and moved to lease out unoccupied workplace house.
Petersen wrote within the memo that workers within the U.S. and Canada are being directed to work at home on Friday except they work out of a Flexport warehouse. Staffers primarily based in Asia shall be contacted in regards to the layoffs on Monday, in response to the memo.
Flexport representatives did not instantly reply to a request for remark.
This is a growing story. Check again for updates.