News / Tough times for logistics tech players forced to cut staff numbers

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Tech start-ups in the logistics sphere have continued the trend set in the final quarter of last year, with Uber Freight and Flexe among those set to lay off staff amid ongoing financial struggles.

Seattle-based Flexe, once valued at $1bn, was first out the gate this week, laying-off more than a third of its staff on Monday, with Uber Freight on Tuesday confirming it had been “forced into similar measures”, having already made significant staff cuts last year.

EV Cargo said that it had also had to make some redundancies. A spokesperson for EV Cargo told The Loadstar last month that the supply chain platform had to make redundancies “due to the international economic climate”.

The spokesperson added: “Like other providers, we regularly assess our operations and must be proactive and prepared to adapt; we’ve identified a small number of positions at risk of redundancy.”

The spokesperson did not confirm the actual number of jobs at threat or when they were likely to go, but did add that the decision was not tied to issues of AI, liquidity, or over-hiring during the pandemic years  – all of which which have been suggested as recent reasons for job culls in the sector.

Flexe is to let go 99 workers and the move follows its cut of 131 from the payroll in September. CEO Karl Siebrecht described it as a “difficult decision”.

He told The Seattle Times, the company he founded, which helps shippers source logistics services, “remains committed to supporting our departing employees”.

Similarly, an Uber Freight spokesperson told FreightWaves its decision to cut its workforce was “not made lightly”, but would “enhance operational efficiency and long-term success”.

It also refused to give the exact number of employees set to depart, but FreightWaves put the number at between 40 and 50, adding to around 200 Uber laid off last year.

All the losses underscore a sense of troubling times for tech start-ups, and not just those in logistics, which has been contending with cooling freight demand and investor retreats.

Reports out of the US suggest around 150,00 workers were involved in tech lay-offs last year, a big increase on the 93,000 made redundant in 2022, with big names including Amazon, LinkedIn and Vodafone involved in culls.

Meanwhile, reports out of Germany suggest KPMG has recommended Leipzig/Halle Airport either brings new money in or cuts jobs.