News / Freightos’ job cuts may have been inevitable as profitability push intensifies 

Dreamstime

Freightos’ decision to cut up to 15% of its workforce reflects a broader shift at the digital freight platform, as mounting losses, slowing growth and investor pressure push it towards financial discipline. 

The Nasdaq-listed company yesterday confirmed a cost optimisation plan that includes a global workforce reduction of up to 15%, aimed at supporting its target of reaching adjusted EBITDA breakeven by the end of 2026. 

The cuts could affect around 50–60 roles globally, based on the company’s workforce. 

Freightos expects to incur some $1.3m in restructuring costs, while generating annualised savings of approximately $4.5m from the fourth quarter of 2026. 

“These types of decisions are very difficult, but this is a necessary step to ensure Freightos is positioned for long-term, sustainable growth in a dynamic market,” said new chief executive Pablo Pinillos. 

The move comes as the company seeks to address a persistent history of losses. Freightos reported a net loss of more than $17m last year, following losses of a similar magnitude in previous years, even as revenues have continued to grow. 

Revenue rose around 20% year-on-year to roughly $29m, underlining continued demand for its digital freight platform – but also highlighting the challenge of converting growth into profitability.
However, growth is expected to moderate, with the company guiding to more modest expansion this year, increasing pressure to align its cost base with a slower trajectory. 

While Freightos maintains a cash position sufficient to fund operations in the near term, the continued burn and limited scale mean the path to breakeven has become a more immediate priority.
Its strategy remains focused on expanding its core platform – spanning pricing, procurement and booking – while shifting towards higher-margin software and tighter cost control. 

Freightos may not have detailed which teams would be affected, but its focus on AI-driven efficiency aligns with founder Zvi Schreiber’s recently published view that future software businesses may require far smaller development teams. 

Recent filings and governance changes suggest this shift has been taking shape for some time. 

Dr Schreiber, who stepped down from the board earlier this year citing differences over the company’s direction, remains a significant shareholder with a 7.2% stake.  

He said at the time: “As our perspectives on the direction for the company have diverged, I prefer to step off the board at this time.” 

Regulatory filings also show he has sold small amounts of stock in recent weeks, although the volumes are minimal relative to his overall holding. 

At the same time, Freightos’ board has been reshaped over the past two years, with increasing influence from both industry players and institutional investors. 

Major shareholders include M&G Investment Management, which holds around 18%, while Qatar Airways – represented on the board by cargo chief Mark Drusch – owns roughly 8.7%. The board also includes senior logistics and supply chain figures, such as former Maersk executive Rotem Hershko, who joined the board in August, and CEO of bulk business Stolt-Nielsen, Udo Lange, who chairs the board. 

The composition reflects a shift away from a founder-led structure towards one shaped by strategic stakeholders and financial backers – and a growing emphasis on financial discipline.