Seattle-based trucking market startup Convoy is doing one other spherical of layoffs. It’s the most recent tech firm to trim headcount amid ongoing financial uncertainty and the potential of a recession.
In an e-mail to employees, Convoy CEO Dan Lewis described a “reorganization and useful resource realignment.” He mentioned Convoy’s prospects are dealing with exterior pressures together with provide chain shortages and inflation.
“In an setting like this, firms that embrace change as the brand new regular and construct resilience would be the winners within the years to come back,” Lewis wrote. “Simply as we have to embrace change and keep ever resilient, our prospects are on the lookout for companions to assist them accomplish that as nicely.”
A Convoy spokesperson declined to offer particulars concerning the variety of workers laid off. A number of staff primarily based in Seattle and Atlanta posted on LinkedIn on Monday, reporting that they have been let go.
Earlier this summer season, Convoy reduce 7% of its workforce. The corporate mentioned it employed 1,300 individuals in April, when it raised a $260 million funding spherical at a $3.8 billion valuation, so these layoffs affected round 90 workers.
Based in 2015 and backed by the likes of Invoice Gates and Jeff Bezos, Convoy’s software program automates transactions between trucking firms and shippers. Its community has greater than 400,000 vans and a roster of shippers together with House Depot, Procter & Gamble, Unilever, and Anheuser-Busch.
The corporate, ranked No. 4 on the Startup 200 listing of high Pacific Northwest startups, mentioned in April it anticipated to surpass $1 billion in income this 12 months.
Convoy competes with quite a lot of comparable digital-focused delivery firms together with Uber Freight, along with conventional brokers investing in their very own know-how. They’re battling for a share of a $800 billion U.S. trucking trade.
In his e-mail to employees, Lewis mentioned the corporate is reorganizing its shipper-facing enterprise operate right into a single group led by Ryan Gavin, chief development officer, who joined in 2019 after stints with Amazon and Microsoft. The corporate’s chief income officer, Melissa McCann-Tilton, will transition to advisor to the president and CEO after which depart Convoy on the finish of this 12 months.
Lewis and Grant Goodale each labored at Amazon earlier than launching Convoy. Goodale transitioned from the CTO function to chief expertise officer final 12 months.
Convoy employed former Expedia CEO Mark Okerstrom as president and COO in 2020.
Various tech firms are shedding staff. Microsoft confirmed it was making cuts final week, as did software safety and supply large F5, which reduce about 100 jobs. Tech giants together with Snap and Oracle have reduce employees and others comparable to Meta and Apple are slowing or freezing hiring.
Different Seattle-area firms together with T-Cellular, Compass, Leafly and DreamBox Studying have not too long ago been impacted by layoffs.