WehoThe package delivery company confirmed it has laid off 19% of its workforce, approximately 65 jobs. “Information News” first reportedthese layoffs come after Veho’s revenue will grow by nearly 90% in 2023.
“We have reorganized our team to increase efficiency, accelerate our path to profitability, and enable us to invest more in areas that directly impact our customers’ needs and growth,” a company statement sent to TechCrunch said.
Founded in 2016 by Itamar Zur and Fred Cook, the logistics technology company is dedicated to solving the last-mile delivery problem—how packages get from distribution centers to customers.
At the start of 2022, things are looking good for Veho. The company’s revenue grew 40% over the previous year, and its customer base grew 20%. There are also plans to increase the number of employees from 500 to 2,000 by the end of 2022.
The company has also been lucky in terms of venture capital as shopping shifted online during the pandemic.At that time, the company raised funds Series B financing of US$170 million The company’s valuation rose to $1.5 billion in a funding round led by Tiger Global Management.
That was after the announcement US$125 million Series A financing The round propelled Veho into unicorn territory two months ago. General Catalyst led the round.
Veho now has over $300 million in venture capital backing, expanding its market and Introduced many senior managers At the end of 2022, Eric Swanson will serve as chief commercial officer and Brian McDevitt will serve as chief revenue officer.
In the summer of 2023, the company enters 11 New England markets and is working with customers including Kroger, Saks, Nordstrom, Misfits Market, HelloFresh and Nespresso. At the time, Veho said it had 910 employees across its corporate and warehouse teams and was looking to fill more positions.
According to The Information, while the company continues to grow, last year was not without its problems, including laying off customer and driver support staff and moving those jobs overseas.
Then Swanson left in March, according to him LinkedIn profilein December, Viejo appoints Deborah SurretteOracle’s former vice president of sales holds the position. McDevitt’s social media profiles still show him as chief risk officer, but he, too, has left, according to The Information.
Shipping costs rise and merge continues to impact the logistics industry, so we’ll have to see what happens. Veho remains optimistic, telling TechCrunch that its capital position is “very strong and we are building on our strong momentum and record 2023 season.”