Two startups, Flexport Inc. and Carta Inc., have slashed headcount as they hit valuations of over $7 billion in recent funding rounds.
Flexport, which provides a cloud-based logistics platform, will lay off 20% of its workforce, or about 640 employees. Co-CEOs Dave Clark and Ryan Petersen announced the move. memo Released this morning.
“Overall, we are well positioned, but we cannot escape the macroeconomic downturn that has affected businesses around the world,” Clarke and Petersen said in a note. “Our customers have been impacted by these difficult circumstances, which has resulted in lower volume forecasts through 2023. , which means we are overstaffed in various roles. The company.”
The company offers a logistics platform that businesses use to order goods from their suppliers. The platform also offers the ability to manage how products are shipped. Businesses using it can ship goods by truck, freighter or container ship, as well as monitor deliveries to detect potential delays.
Flexport says it helped companies ship about $19 billion worth of goods in 2021. Last February, the startup raised $935 million in a late-stage investment led by Andreessen Horowitz and her MSD Partners. Investment valued it at over $8 billion.
The company offers several types of support to employees affected by layoffs. In the US, we offer 12 weeks of retirement, six months of extended medical coverage, bonus payments, accelerated stock vesting, immigration support, and access to our internal talent directory with employment opportunities.
Post-layoffs, we plan to continue investing in growth initiatives. “With Flexport, 2023 will bring incredible speed. We are trying,” write Clarke and Petersen.
Another venture-backed enterprise software startup, Carta, is also cutting headcount.internal memo obtained According to TechCrunch today, the startup is laying off 10% of its workforce, or about 200 employees.
Affected employees will be paid two and a half months of severance pay. Carta will also provide her one week of retirement benefits, immigration support, and extended mental health services for each year she spends at the startup. According to TechCrunch, employees not affected by the layoffs have the option to voluntarily resign using a retirement package.
The company offers a cloud platform that startups use to manage their cap tables. A cap table is a document that describes the number of shares purchased by each investor in a startup and contains relevant financial data. It also offers many other features such as a collection of tools that venture capital firms can use to manage their funds.
Carta has raised approximately $1.1 billion from investors since its launch. In August 2021, closed A $500 million funding round led by Silver Lake was valued at $7.4 billion. The company’s platform is used by more than 30,000 of his companies, including about 5,000 investment firms, he said.
Carta and Flexport join a growing number of tech companies that have cut headcount in recent months.Last week, Salesforce Inc. and Vimeo Inc. also announced work reduction.