Seattle-based logistics company Flexe has laid off 33% of its employees, the company confirmed with the Business Journal on Tuesday.
A Flexe spokesperson didn't say how many employees remain at the company after the cuts, but the company has more than 430 employees listed on LinkedIn. The layoffs come after Flexe raised a $119 million Series D round in July 2022 and reached a valuation of more than $1 billion.
"As hard as this was for us, we sincerely acknowledge the challenges it presents to those impacted," the Flexe spokesperson said in a statement. "Flexe made this decision to stay ahead of the changing economic environment that most logistics businesses are experiencing."
The spokesperson added that the layoffs affected the marketing, sales, engineering, operations, and general and administrative departments. Flexe is offering 60 days of severance plus additional tenure-based severance, as well as other benefits and outplacement services.
In July of last year, the company confirmed it had laid off a small number of employees on the recruiting team due to adjusting its hiring plans.
Flexe was founded in 2013. The company offers on-demand warehouse and fulfillment services, turning warehouse space into a variable cost rather than a fixed cost. The aim is to help clients scale up warehouse space during busy periods and scale down when business is slower. Its clients include Great Jones and Ace Hardware. In August, former Majestic Steel USA and Scholastic executive Dave Kipe joined Flexe as the company's first chief operating officer.
After its major funding round last year, Flexe moved out of Pioneer Square and into a 50,500-square-foot space in Seattle's Sodo area at 4786 First Ave. S.
"(Flexe) maintains a significant cash balance and will spend 2024 expanding its distribution and fulfillment offerings to better serve the world's largest retailers and brands," the spokesperson said in the statement.
