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Flexport will lay off 20% of the company starting Friday, leaked memo says

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Re: Flexport will lay off 20% of the company starting Friday, leaked memo says

#11
post #4

> With more than $1 billion in net cash, following this change, Flexport is now in a great position to take advantage of the opportunities in front of us to return to profitability as soon as the end of next year. This feels like a tone-deaf statement to make in an email laying off 1 in 5 of your company. "We're letting you go, but look how much cash we have!"

The message is for the stock market, they're talking past the laid off people. I hope the have a more appropriate message for them.

They don't need to talk past the laid off people to the stock market. The stock market loves layoffs.

Re: Flexport will lay off 20% of the company starting Friday, leaked memo says

#13
post #9

The letter sent to employees is at https://www.flexport.com/blog/flexport-ceos-note-to-employee...

That’s not the letter. Take a look at the date of the blog…

The date is yesterday about layoffs happening today?

Re: Flexport will lay off 20% of the company starting Friday, leaked memo says

#16
post #12

Meh. I think Flexport proved what their word was worth when they rescinded loads of employment offers. Not an ethical company to deal with.

To be fired in the latest layoff a few weeks later.... Not sure what you want them to do?

Re: Flexport will lay off 20% of the company starting Friday, leaked memo says

#17
post #5

Burried in Petersons mail is one nugget every B2B start-up needs to take to heart: >> It's clear that our customers want us to be a profitable company they can rely on to solve important problems in their supply chain. An endless stream of VC money allowing you to sell dollars for dimes does not achieve that. Also, I had a feeling that Flexport might run into problems one day, when Softbank invested, Softbank being s…

Softbank is the VC worlds' equivalent of the kiss of death.

Re: Flexport will lay off 20% of the company starting Friday, leaked memo says

#19
post #10
post #4

Earlier quoted context omitted.

The message is for the stock market, they're talking past the laid off people. I hope the have a more appropriate message for them.

Why would the “stock market” care? It explicitly talks about reassuring costumers.

It cares because: running out of cash is a bad idea for any company and running leaner says that you will have more runway. Whether or not it will be enough runway as perceived by that very same stockmarket will determine your share price. If there are no buyers for your stock the price will drop like a stone, so this is both a message to current shareholders 'don't sell, we'll make it' and potential buyers 'sellers are missing out on a great deal, you should buy our stock'. Of course this is more impactful if you are publicly listed (which Flexport isn't). But it will impact their ability to raise money, at what valuation that will happen and how existing shareholders will be diluted.

It may all not work and they may still go bust but that's their current messaging in ELI5 mode.

It may also be that Flexport - in spite of earlier messaging - is quietly planning an IPO. I think that would be a fairly stupid move at this stage but who knows.

https://www.cnbc.com/2022/05/17/we-can-be-one-of-worlds-bigg....

Another audience for these messages is their customers: if it turns out that Flexport's future is insecure they may well take their business elsewhere or stop considering using Flexport. That can reduce their runway even quicker.

Re: Flexport will lay off 20% of the company starting Friday, leaked memo says

#20
post #5

Burried in Petersons mail is one nugget every B2B start-up needs to take to heart: >> It's clear that our customers want us to be a profitable company they can rely on to solve important problems in their supply chain. An endless stream of VC money allowing you to sell dollars for dimes does not achieve that. Also, I had a feeling that Flexport might run into problems one day, when Softbank invested, Softbank being s…

Softbank is the VC worlds' equivalent of the kiss of death.

Which raises the question why they are not involved in the eVtol sector, doesn't it?
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