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Flexport slashes 20% of global workforce over weak 2023 volume forecast

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Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#21

Post by boeingUH60 »

iab wrote: post #18
akavi wrote: post #16

Earlier quoted context omitted.

YC-funded freight forwarding company. Basic thesis is by using tech, you can dramatically lower the labor costs of forwarding, and since freight forwarding has huge returns to scale, the benefits compound. They raised 2 G$ from 2019-2022, and their CEO used that warchest to expand counter-cyclically through the pandemic. TBD if either of the two theses pan out. Freight forwarding itself is the industry of coordinatin…

They raised two gillion??

$2.4 billion - https://www.crunchbase.com/organization/flexport/company_fin....

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#22

Post by jasode »

msoad wrote: post #2

I don't know what Flexport is, all I know is that it was the only jobs ad in Hacker News for a long time

>I don't know what Flexport is

Don't know the exact origin of the name but maybe an easy way to remember it is "FLEXible transPORT".

To massively oversimplify it for the sake of being short:

- ship a small package within the same country --> UPS/FedEx

- ship a large heavy package (e.g. forklift pallet) within the same country --> freight trucking company

- send a shipping container from one country to another that requires a ton of complicated government paperwork for export & import, pass customs inspection, pay duty fees, and involves coordinating ocean carriers, railroads, air freight, docks, etc --> a freight forwarding logistics service like FlexPort.

E.g. you invented a new electric scooter and had a factory in China manufacture a thousand of them. Now you have to ship those 1000 scooters from the factory to a warehouse in USA. That's the business FlexPort is in. FlexPort itself doesn't own any ships or railroads. It is a coordinator (acts as agent) for various transport companies.

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#23

Post by bityard »

baumy wrote: post #15
msoad wrote: post #2

I don't know what Flexport is, all I know is that it was the only jobs ad in Hacker News for a long time

I have a message from them in my linkedin inbox from January 3rd (8 days ago) telling me about exciting opportunities there. > You’d be joining at an exciting time, Flexport is in a hyper-growth stage

Can you imagine the backlash they would get from both inside and outside the company if they started pulling job recs before publicly announcing the downsizing?

See also: insider trading

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#24

Post by nickff »

ProAm wrote: post #13
msoad wrote: post #2

I don't know what Flexport is, all I know is that it was the only jobs ad in Hacker News for a long time

This is the guy that got famous during the pandemic for suggesting ports stack containers 3 or 4 levels high vs the standard of 2 [1] [2] Turns out 2 is just fine. [G] https://www.npr.org/2021/11/03/1051773672/a-look-at-whats-ca... [H] https://news.ycombinator.com/item?id=28957379

Where did you get the impression that two is fine? I am somewhat familiar with the issue, and looked at both of your links, but still don't understand. Where I live, they stack containers six high.

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#27

Post by ctvo »

willcipriano wrote: post #25

Remember when everyone cut jobs and canceled orders at the beginning of the pandemic and it really bit them? I'm like 49% sure that's going to happen again. Something funny is in the air.

> Remember when everyone cut jobs and canceled orders at the beginning of the pandemic and it really bit them?

No. Did they have layoffs previously? I also don't remember anyone cancelling orders and cutting jobs at the beginning of the pandemic.

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#28

Post by baumy »

bityard wrote: post #23
baumy wrote: post #15

Earlier quoted context omitted.

I have a message from them in my linkedin inbox from January 3rd (8 days ago) telling me about exciting opportunities there. > You’d be joining at an exciting time, Flexport is in a hyper-growth stage

Can you imagine the backlash they would get from both inside and outside the company if they started pulling job recs before publicly announcing the downsizing? See also: insider trading

Fully agreed, it just shows what people should already know - the only folks who know a layoff is coming in advance are C suite and VPs, maybe a few others. And they will lie through their teeth about it right up until the moment it happens. I'm sure the recruiter who sent that message had no idea this was coming, and is just doing his job.

The rest of us have to read the tea leaves. But for every company that lays people off, you'll find employees swearing up and down that the business is healthy, layoffs aren't happening, and they know this because execs assured them for the third time just yesterday that there's no plans for layoffs.

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#29

Post by CityOfThrowaway »

72f988bf wrote: post #3

The original source seems to be posted at https://www.flexport.com/blog/flexport-co-ceos-note-to-emplo...

Interesting that they say:

> At Flexport, 2023 is going to bring extraordinary velocity – we are in the process of doubling our software engineering talent and moving to single threaded business organizations to build world class products faster, and we will continue to invest in delivering best-in-class operational execution for our customers.

Looks like they are laying off non-tech workers who they have made (or will make) obsolete through automation

Re: Flexport slashes 20% of global workforce over weak 2023 volume forecast

#30

Post by Baeocystin »

Reading the letter, it looks like the departing folks are being offered good severance. That makes me happy to see. I've been through rounds of layoffs myself. It never feels good, but how the company treats you if your number is called makes for a lasting impression.
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