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US-based supply-chain management logistics startup Flexport is set to dismiss hundreds of its employees, in a bid to readjust amid a slowdown in the global shipping industry, Bloomberg reported earlier this week, citing people with knowledge of the matter. Flexport will lay off less than 20% of its 2.6k workers, the source said. The startup laid off 20% of its employees in January 2023, followed by another 20% cut in October 2023, with the year also seeing a shakeup in Flexport’s leadership, Bloomberg wrote.
The startup had boomed during the pandemic as e-commerce took off and shipping rates increased, but declining rates since then have seen the company’s performance tumble. The latest round of layoffs follow a USD 260 mn investment in the outfit by Shopify via a convertible note. The startup has so far raised USD 2.35 bn — not including Shopify’s latest investment — and was valued at USD 8 bn by major VC funds that include Founders Fund, Andreessen Horowitz, and DST Global, Bloomberg also said.
EU and British businesses have seen a surge in expenses since Brexit, spending some GDP 100k on post-Brexit customs fees during the past three years, The Financial Times reports, citing a poll of 1.1k business leaders. Increased complexity was reported by 81% of top officials in UK businesses, and 75% reported a drop in sales to the EU due to bureaucratic obstacles. On average, those blaming Brexit for impacting their businesses reported a cumulative cost of GDP 96.3k since 2020. Concerns are also growing about potential inflationary pressures as the UK introduces new Brexit border checks. Over three quarters say they have not seen the post-Brexit trade surge promised by advocates.
OTHER STORIES WORTH KNOWING THIS MORNING-
- Air Liquide + TotalEnergies work on hydrogen refueling: France’s Air Liquide and TotalEnergies have established a JV to build hydrogen refueling stations for heavy-duty trucks across Europe. TEAL Mobility will establish over 100 hydrogen stations within the next decade, with the initial operation of around 20 stations in France, the Netherlands, Belgium, Luxembourg, and Germany this year. (Reuters)
- Finnair to cancel flights amid labor union strikes: Finland’s national carrier Finnair is set to cancel some 550 flights this week due to industrial action on 1-2 February which will affect operations at Helsinki Airport. (Statement)
- Ryanair wants Boeing’s 737 MAX 10s:Irish budget carrier Ryanair told Boeing that it is willing to purchase, “at the right price,” any Boeing 737 MAX 10 aircraft turned down for delivery by US customers. Ryanair already has 150 orders for the MAX 10, with options for another 150. First deliveries are slated for 2027 and the carrier is “hopeful” the aircraft can begin flying in 2025. (Reuters)
