Convoy cuts more jobs as part of a restructuring
Convoy, the Seattle-based digital freight network that connects truckers with shippers, is shuttering its Atlanta office and laying off workers as part of a restructuring.
This is the third time in less than a year that Convoy has laid off workers.
The restructuring comes as Convoy transitions to a new customer service model that automates many of the tasks the conducted by employees, according to a LinkedIn post published Thursday by CEO and co-founder Dan Lewis.
“This shift represents a big step forward in how we operate, but it comes at a cost. Increased automation and tighter focus have changed our staffing needs,” Lewis wrote.
Convoy will shut down its Atlanta office. It will maintain a small team in the city, according to the post. Jobs in other regions will also be cut, including those tied to its changing customer service model and other aspects of the business.
A spokesperson confirmed the move and said “We have restructured to further streamline and improve our shipper experience.” The company declined to disclose how many workers are losing their jobs.
Convoy launched in 2015 to modernize freight brokerage, a fragmented and oftentimes analog business that matches loads from shippers with truckers. The company developed software that helps automate the process of connecting truckers and shippers. It has since added more fintech products to its digital platform, including a fuel card, quick payments and a drop-and-hook service that allows shippers to pre-load Convoy trailers and set them aside so truckers can pick them up during more flexible windows.
Convoy cut 7% of its workforce in June just three months after raising $260 million equity and debt. The Series E equity was led by Baillie Gifford and T. Rowe Price and the $100 million venture-debt investment came from Hercules Capital. Convoy’s valuation was $3.8 billion at the time.
More layoffs followed in October.
Convoy cuts more jobs as part of a restructuring by Kirsten Korosec originally published on TechCrunch