Seattle-based logistics company Flexe is laying off 38% of its staff as the industry continues to face headwinds.
A company spokesperson on Monday confirmed the cuts with the Business Journal but didn't say how many employees remain at the company. Flexe laid off one-third of its headcount in September.
The spokesperson said in a statement Flexe made the decision "given ongoing market volatility in the logistics industry driven by continued macroeconomic uncertainty. While we have a very strong cash position, it is important that we preserve our ability to continue investing in the business."
Flexe had 348 employees listed on LinkedIn as of Monday morning. The layoffs will affect 99 Seattle employees, according to a Worker Adjustment and Retraining Notification filed with Washington state Monday. The spokesperson said the layoffs will impact all departments, and Flexe will offer 60 days of severance plus additional tenure-based severance, benefits and outplacement services.
Flexe, founded in 2013, offers on-demand warehouse and fulfillment services, turning warehouse space into a variable cost rather than a fixed cost. The company wants 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 2022, Flexe raised a $119 million Series D round and hit a valuation of more than $1 billion. After that major funding round, Flexe moved out of Pioneer Square and into a roughly 50,500-square-foot space at 4786 First Ave. S. in Seattle's Sodo area.
"Flexe remains committed to delivering world class logistics services for all of its customers," the spokesperson said in a statement.
Flexe's layoffs come amid a logistics recession that has impacted other tech companies in the space. Freight network startup Convoy in October shut down and laid off 533 employees in Seattle. The Seattle-based company hit a valuation of $3.8 billion in 2022 after raising $260 million between equity funding and venture debt.
In November, logistics startup Flexport acquired Convoy's technology and brought on a handful of employees, including Convoy's co-founder and then-CEO Dan Lewis.
