Flexport, a tech-forward freight forwarding company based in San Francisco, has experienced another round of high-level departures following the recent resignation of its CEO.
According to several reports from various international media outlets, after Flexport CEO Dave Clark announced his resignation on September 6th via the social media platform formerly known as Twitter, the company is now seeing the departure of two more executives.
One of them is Teresa Carlson, who was appointed as President and Chief Commercial Officer at Flexport earlier this year, and the other is Darcie Henry, who was hired in August of the previous year and assumed the role of Chief Human Resources Officer in October. Both of these executives were employed during Dave Clark’s tenure at Flexport and had prior experience at Amazon.
Simultaneously, Flexport’s founder, Ryan Petersen, has announced the revocation of dozens of previously accepted job offers. In his latest tweet on the platform, he expressed regret, stating, “I regret to inform those who were hoping to join our company that they will not be able to do so.”
He also mentioned that over 200 vacant positions listed on the Flexport website will be canceled, with only a select few roles directly related to core plans, such as those aimed at improving the timeliness of freight services, being retained.
Regarding the reasons for downsizing the company’s workforce, Ryan Petersen explained in his tweet, “Now is not the right time to increase headcount and expenses.”
Flexport, founded by Ryan Petersen in 2013, facilitates trade by connecting buyers and sellers of goods in the supply chain with logistics partners through its digital platform, simplifying trade processes for customers and enabling all-in-one shipping, storage, and trading activities.
In a bid to enhance its product offerings, Flexport had announced a large-scale hiring drive for software engineers at the end of 2022 to bolster its software engineering team and accelerate the improvement of its digital platform services.
Despite achieving a market value of $8 billion in 2022, Flexport has been facing challenges amid a slowdown in global shipping volumes. In January of this year, the company announced a 20% workforce reduction, affecting approximately 700 employees. The company cited concerns about the impact of macroeconomic downturns on global business and anticipated reductions in freight volumes as reasons for the layoffs. Additionally, increased efficiency resulting from a new organizational operating structure led to excess staff in various positions, necessitating the downsizing.
However, as the company’s market performance continued to struggle, disagreements among top management at Flexport grew, ultimately leading to a wave of high-level departures.
On September 6th, in local U.S. time, Dave Clark announced his resignation as CEO of Flexport on the social media platform. While Dave Clark declared his resignation from Flexport, insiders have revealed that it was the Flexport board that voted to terminate his employment. Furthermore, sources indicate that all six executives hired during Dave Clark‘s tenure at Flexport are expected to be let go.
Shortly after Dave Clark’s resignation announcement, Flexport founder Ryan Petersen published an open letter on the platform, stating that he would reassume the role of CEO. He emphasized that Flexport needed significant reform to sustain business growth and restore profitability.
He also stressed, “Flexport is at a crossroads, either invest to break free from the current slump in the global logistics industry or pursue a path to quickly regain profitability. Both the board and I believe that achieving efficient operations and profitability in the short term is the right path forward.”
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President and Chief Commercial Officer
Chief Human Resources Office