Flexport Layoffs: Ongoing job cuts target leadership, fulfillment teams

What’s happening at Flexport?

Flexport is undergoing another round of layoffs as it eliminates management positions and reduces its fulfillment team. This decision, detailed in an internal memo, marks the fourth layoff event at the global supply chain solutions provider over the past two years. Flexport has not disclosed the total number of employees impacted in this latest round.

Additional details

• CEO Ryan Petersen stressed the need to speed up growth and profitability efforts.
• Petersen noted that the layoffs will “increase velocity” towards future profitable growth.
• Flexport declined to provide specific numbers or comment publicly on the recent layoffs.
• This follows a series of challenges in logistics and e-commerce, prompting multiple rounds of job cuts.
• In January 2024, Flexport cut 20% of its workforce, laying off around 500 employees.
• Two rounds in January and October 2023 resulted in a total of 1,300 employees being let go.

Employee reactions

Affected employees shared their experiences on LinkedIn following the layoffs.

• William Grant, a materials procurement analyst, expressed his search for a new role and company to grow with.
• Senior software engineer Patrick Demian highlighted his experience through multiple layoffs and acquisitions, ending with the latest round at Flexport.

Company background

Flexport expanded into e-commerce fulfillment by acquiring Shopify’s logistics division in 2022. Despite securing a $260 million investment from Shopify in early 2023, the company has continued to face financial challenges. In September 2023, Flexport dismissed former CEO Dave Clark, signaling ongoing leadership changes as the company navigates difficult market conditions.

Layoffs in Canada

It remains unclear exactly how many Flexport employees in Canada will lose their job as a result of this layoff.

Your rights

In Canada, non-unionized employees at Flexport are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.

Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Intuit, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Shell to lay off 20% of deals division, part of restructuring
• Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.