Convoy has cut 7 percent of its workforce, becoming the latest IT business to reduce staffing in the face of a shaky economy.
The layoffs were verified by a representative for the Seattle-based transportation marketplace business.
Convoy stated it had 1,300 workers in April when it secured a $260 million funding round at a $3.8 billion value, so the layoffs impacted about 90 individuals.
A spokesperson said: “We have made a number of organizational and other operating expense-related changes to ensure we are in the strongest financial position possible ahead of the potential for worsening economic conditions.”
A slew of computer firms have laid off staff, while larger corporations have slowed or stopped hiring entirely, citing a variety of macroeconomic factors, including growing prices, as reasons for concern.
Tech businesses should decrease costs and prolong their cash runways, according to venture funders. This week, Stitch Fix and Bird were among the companies that announced layoffs.
Convoy’s software automates transactions between transportation firms and shippers, and it was founded in 2015 with backing from billionaires Bill Gates and Jeff Bezos.
Home Depot, Procter & Gamble, Unilever, and Anheuser-Busch are among the shippers on its network, which includes over 400,000 vehicles.
In April, the business, which is rated No. 4 on the GeekWire 200 list of top Pacific Northwest startups, predicted that revenue will exceed $1 billion this year. Its sales increased by 51 percent year over year in the first quarter. CNBC’s annual Disruptor 50 list just rated it at No. 6.
Convoy is one of many fast-growing logistics software businesses that have raised billions of dollars in recent years amid supply chain disruption created by the epidemic as shippers battled with market volatility and turned to technology for aid, including many in the Seattle area.
Mark Okerstrom, the former CEO of Expedia, joined the firm as president and COO in August 2020. Sonia Jain, the former CFO of Cars.com, just joined Convoy as its CFO. In addition to its fresh venture funding, Convoy also landed a $150 million line of credit in April.
What is Convoy?
Convoy is a digital freight network solving problems in the $800B trucking industry. They partner with the best trucking companies and shippers to move millions of truckloads, rethink freight fundamentals, and design innovative solutions that address supply chain inefficiencies.
Where it is headquartered? The company is headquartered in Seattle, Washington.
How many staff does it have? It currently has around 1200 employees.
What is its annual revenue? The annual revenue is around $326 Million.