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Flexport CEO resigns a year after joining logistics company

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Re: Flexport CEO resigns a year after joining logistics company

#41

Good for them. Dave Clark is a stain on humanity. Horrible horrible human.

I'm curious, what's the story behind him? I heard him talk at a conference once and thought his insights were somewhat benign for someone in his position, but he didn't strike me as evil. Just uninteresting, I guess.

He's got a reputation for being particularly brutal on workers -- this is the guy who was, after all, responsible for Amazon's warehouse and logistics conditions, including working with GC Zapolsky to go after unionization and workers' rights efforts. Amazon's retail profitability pretty much rests on his ability to squeeze every cent out of employees' sweat, but the human toll has been high. (One particularly telling story about Clark is that he oversaw Amazon's noncompete lawsuit against his longtime friend and best man at his wedding, logistics head Arthur Valdez, when Valdez left Amazon for Target.)

Re: Flexport CEO resigns a year after joining logistics company

#42
post #33

I'm sure there's some juicy details behind the curtains, but people are too professional to air it publicly. Here's some fun but baseless theories: 1) Typical big-company guy fails to adapt to startup life. A year ago, Flexport's tech team was 400 people. That's minuscule compared to what Dave's used to at Amazon. He came in, insisted on a bunch of unnecessary hiring, bloated the tech team with deadwood, internal kin…

Both your scenarios blame the new CEO instead of the old CEO. I'd wager the old CEO created a huge mess that the new one couldn't clean up.

Re: Flexport CEO resigns a year after joining logistics company

#43
post #22

Good for them. Dave Clark is a stain on humanity. Horrible horrible human.

Not saying you’re wrong, but a bit more substance and less vitriol might be illuminating. I can’t recall hearing anything about him good or bad (This comment aside…).

I could probably write a book on him and everything he did at Amazon that was worth talking about, and I gotta admit, I didn't want to start today, but you're right that he deserves an explanation. Here's a few snippets that can be directly attributed to him:

* Amazon's policy of firing people on the spot for talking about unionizing.

* Their (former) policy of not operating anywhere where they would end up having to pay taxes

* Their policy of dropping prices through the floor as a negotiation tactic to get competitors to fold or get bought out

* Their policy of abandoning entire towns once they had already hired and fired everybody once

* Their policy of inventory co-mingling, and the deflection of blame to random merchants when they couldn't prove who had sent fakes.

* Their policy of always documenting anything that could even be remotely construed as a fireable offense, just in case he ever fired someone on the spot, as he commonly did.

Outside of official policies:

* The way he enforced a cult of personality, only hiring people who would constantly praise him, and fire people the moment they said anything that questioned his authority. He would even hold petty grudges against people that disagreed with him, using amazon's ridiculous non-competes to harass them after they left the company.

* The way he went to managers of pregnant women the moment they started to show, telling them to find any bullshit but legal means to fire them. (I actually overheard him say this, talking about one of my co-workers the moment she left the room).

* The way he bought a robotics company without any due diligence or even a product demo, forced adoption of the robots throughout his network, only to find out they had fundamental problems that prevented scaling to amazon's scale. Instead of writing off his shitty investment, he came in and micromanaged out every last person from the original company due to unrealistic and impossible demands.

* The way he unintentionally forced operations managers to completely change their operations every time he visited, so they wouldn't get fired for not listening to him, only to have to change it back the moment he left so they could actually be productive enough to not get fired.

* The way he would kick people out of elevators when he would get in, because he had to talk about "confidential stuff", and it couldn't wait til he got to his office. (First hand experience here, lol).

* BTW, he was never actually good at his job. For the entire time he was in charge of Amazon's retail business, they had progressively worse inventory turns, logistics costs, gross profit margins, returns on advertising, employee retention rates, etc. If you wanna see a hilarious accounting time lapse, you can literally take a zip file full of their public financial statements, skip to the parts about the Amazon retail business, and watch him waste trillions of dollars while constantly shifting blame to anything but himself.

In the words of a former US Army Major General (I went through first week training with him), when he quit after just 6 months on the job as a regional director: "Amazon is the most disfunctional organization I have ever seen, and I did my PhD on the Soviet military [1]. Also, that guy is a fucking psychopath."

[1] (the subtext of this joke was that the Soviet military was even more disfunctional than the US military, which he was always ranting about, but Amazon easily takes the cake)

Re: Flexport CEO resigns a year after joining logistics company

#44

"resigns" Even in the letter he shared himself he said the founder didn't see eye to eye with him, he 100% got fired. This is also the typical process at Amazon when directors and about are fired, they all "choose to leave to refocus on family".

> Clark has hired political consultants to advise him on a potential 2026 run for governor of Texas, where he resides, according to people familiar with the matter. Greg Abbott, a Texas Republican, is currently serving a third term as governor. https://www.wsj.com/articles/dave-clark-resigns-as-flexport-...

It’s weird that the Wall Street Journal doesn’t say what party he’s considering running as. People who know he hired political consultants would also know who they are and thus if those consultants are Republicans or Democrats.

Re: Flexport CEO resigns a year after joining logistics company

#45
post #33

I'm sure there's some juicy details behind the curtains, but people are too professional to air it publicly. Here's some fun but baseless theories: 1) Typical big-company guy fails to adapt to startup life. A year ago, Flexport's tech team was 400 people. That's minuscule compared to what Dave's used to at Amazon. He came in, insisted on a bunch of unnecessary hiring, bloated the tech team with deadwood, internal kin…

I vote for the more mundane:

3) Bored mega-millionaire wants a neat hobby to try for a year. His previous Amazon compensation for 2021 was $56 million[1], so it's not like he needs to try anymore, or make money basically ever again. 12 months later he's still bored. Maybe he quit to spend more time bathing in bathtubs full of hundred dollar bills.

1: https://fortune.com/2022/06/08/amazon-former-no-2-dave-clark...

Re: Flexport CEO resigns a year after joining logistics company

#46

Earlier quoted context omitted.

Lines up with the sentiment about Flexport being a tech retirement home

Pretty provincial attitude probably propagated by some overpaid MAANG bro who doesn't realize that there's an entire industry of tech folks out there who aren't making $300K/yr TC. So if you are making that . . . a little humility is in order.

I indeed was a former “MAANG bro”, but this is sentiment gleaned from both a cohort of former coworkers who had stints there, along with general Flexporter attitude on Blind (which, for its imperfections and distortions, gives pretty good signal on company morale and culture).

Re: Flexport CEO resigns a year after joining logistics company

#47

Additional information on Dave Clark's impact: "Some Flexport insiders say layoffs and an influx of former Amazon leaders are wrecking morale."[1] '"These people do not have conversations — they make demands," one laid-off employee said. Unsatisfactory answers could be met with harsh feedback, sources said. One laid-off Flexporter said an Amazon veteran told them, "I don't believe a word you're saying," during a pres…

I don't like to look askance at alumni of particular employers, but I have had one too many a poor experience from ex-Amazon hired into leadership roles. The above matches my experience. For me, the worst casualty as various lackeys followed arrival (also ex-Amazon) was the choking out of candidness. Second worst was turning the company into a document factory.

Can you elaborate on the document factory part?

Re: Flexport CEO resigns a year after joining logistics company

#48
post #10

Earlier quoted context omitted.

So many people in leadership at top companies just won the start-up lottery as a junior employee and had the internal drive to get promo at all costs to gradually get to the top. As soon as they leave the bubble it’s clear how few real skills they possess. Likewise, the degree to which Director+ jobs just hire based on current title at a competitor alone is bonkers. I’ve worked under people who are utterly clueless b…

Yup. If you got your foot in the door at the right place and people in leadership liked you, you're on the track to be a director in 6-8 years. Usually the people who promoted you were themselves early employees with no experience being executives, who just peter-principled into senior director/VP roles. I've watched these failsons get promoted to senior director/VP, leave before they were ever accountable for their…

If I could go back to the 70s and re-do my character creation, I'd put all my skill points into Charisma and would have been a CEO by now. Why bother with Comp Eng and business degrees if I could have instead just "be liked".

Re: Flexport CEO resigns a year after joining logistics company

#49

Sounds a bit like the very common story, "We hired this STAR EMPLOYEE from BIGCORP to do BIG things and it was a DISASTER! Help!" I have often thought about this throughout my career, both being in the reporting chain of said star, and once being that star. The fundamental thing is that a persons performance in a role is much less under their own control than even they often expect. So why is that? Especially in mana…

That’s some hard won wisdom there. Thanks for sharing

Re: Flexport CEO resigns a year after joining logistics company

#50
post #33

I'm sure there's some juicy details behind the curtains, but people are too professional to air it publicly. Here's some fun but baseless theories: 1) Typical big-company guy fails to adapt to startup life. A year ago, Flexport's tech team was 400 people. That's minuscule compared to what Dave's used to at Amazon. He came in, insisted on a bunch of unnecessary hiring, bloated the tech team with deadwood, internal kin…

The story I told myself while reading this article: "Wartime founder thought he wanted to retire, brings in solid peacetime CEO. Founder decides peacetime isn't best for company, and comes back to turn it back into a startup."

Not dissimilar from the early Steve Jobs story at Apple.

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