Digital freight brokerage Transfix, headquartered in New York City, laid off about 10% of its staff on Tuesday, April 28.
“In light of the COVID-19 pandemic, Transfix has restructured and streamlined its operations, resulting in 24 full-time employees leaving the company this week,” Lily Shen, chief executive officer of Transfix, told FreightWaves on Wednesday, April 29. “Transfix’s executive team and founders have volunteered to take a compensation reduction during this time.”
A source familiar with the company told FreightWaves “the news was shocking and unfortunate.”
In mid-March, Shen took over the helm as the company’s new chief executive officer as Drew McElroy stepped aside to become chairman and chief operating officer of the digital freight brokerage he co-founded with Jonathan Salama in 2013. Salama serves as the startup’s chief technology officer.
“This was an incredibly difficult decision, but we believe it was the right one for the business and environment ahead, and we wish those who’ve been affected well,” Shen said.
The laid-off employees all received severance pay and a continuation of healthcare for a period of time, she said. Transfix will also serve as an “active support network to help connect them with other opportunities, in New York City, and around the country,” Shen said.
“We are also deeply committed to our shipper and carrier partners, to help them through the challenges they face, and we’re well-positioned for smart and sustainable growth in the future,” Shen said in a statement.
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This is a developing story
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Dave
They suck. Should have laid of 90% and kept 10%. They’ve no idea what they are doing. Their carrier tech sucks. maybe it’s ok for the few owner ops left going but for fleets like us it’s unworkable as our drivers aren’t allowed to pick their own loads (or we would be BK in a month lol.)
We will prob see a lot more layoffs as these money losers with a poor biz model lose funding and go under.
RIP poor business models