Logistics technology startups are cutting workers again, after being negatively impacted by weak freight volumes, high interest rates and a reduction in venture funding. The Wall Street Journal said freight forwarder Flexport, digital broker Uber Freight and warehousing provider Flexe are starting 2024 laying off employees.
Venture-capital investments in supply-chain technology startups fell to $780 million in the fourth quarter of last year, down from $5.2 billion in the same quarter two years earlier, according to PitchBook Data. The layoffs at Flexport and at Flexe are the second rounds of cuts in less than six months.
The pressure to cut costs isn’t only coming from CEOs and investors. Matt Elenjickal, founder of FourKites, said customers are asking to see balance sheets to make sure the companies they do business with are “financially stable.”
