Seattle logistics startup Flexe lays off 99 as freight slump continues

Flexe, a Seattle-based supply chain startup once valued at $1 billion, laid off 99 workers or more than a third of its staff on Monday, the company confirmed Tuesday.

Flexe, which helps retailers source warehousing, transportation and other logistics services, also cut 131 jobs in September.

“Flexe made the difficult decision to reduce our headcount by 38%,” Karl Siebrecht, co-founder and CEO, said in an email Tuesday afternoon, referring to Monday’s layoffs.

“We remain committed to supporting our departing employees and to continuing to provide world class service to our customers,” Siebrecht added. Laid-off employees will receive compensation and benefits through March 8.  

The cuts are the latest sign of trouble hitting transportation-related startups amid a cooling global freight market and a retreat by investors.

In October, Convoy, a Seattle-based digital trucking platform that had the backing of Jeff Bezos and a valuation of nearly $4 billion, shut down and laid off roughly 500 workers. Its technology was sold to California-based freight startup Flexport, which had also cut staff in October, including 165 in its Bellevue office.

Siebrecht declined to comment on the reasons for Monday’s layoffs beyond a statement that was provided earlier to the Puget Sound Business Journal, which said the move reflected “ongoing market volatility in the logistics industry driven by continued macroeconomic uncertainty.”

Founded in 2013, Flexe was among a handful of logistics startups focused on making the shipping business more efficient.

Like many of its peers, Flexe had benefited from a booming freight market during the pandemic. In 2022, the company raised $119 million and was valued at more than $1 billion, according to media accounts.

But like its peers, Flexe has also struggled as the freight market cooled.

Global trade in the first half of 2023 was down 2% versus the same period in 2022, and container volumes through major U.S. ports last summer were the lowest they had been for that time of year since 2017, according to an analysis by Reuters.

At the ports of Seattle and Tacoma, container cargo volumes between January and November 2023 fell 22% versus the same period in 2021, according to the Northwest Seaport Alliance, which oversees marine cargo operations at both ports.

Flexe says it isn’t shutting down. “While we have a very strong cash position, it is important that we preserve our ability to continue investing in the business,” the company told the Journal.