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Convoy restructuring leads to layoffs, closing of Atlanta office

Digital freight platform Convoy announced it will be going through a restructuring process, leading to an undisclosed number of employees being laid off.

In a blog post published Thursday morning, Dan Lewis, the company’s founder and chief executive officer, expounded on Convoy’s “new customer service model” that will leverage its automated platform for efficiency gains.

“The new model is flexible and brings together dedicated support teams highly trained on one or a few shippers’ needs and operating requirements,” said Lewis.

According to Lewis, prior to beta testing this service model, operational employees would work on covering loads across all company shippers. Since dedicating those employees to select shippers, the company has seen operational efficiency improve by 30-40%. 

With a reduction in staff, Lewis noted the company will also be closing its current location in Atlanta, which opened in 2018. Convoy still plans to have a presence in the freight city but will be moving the remaining employees to a more compact location.

“We will still maintain a small team of Convoyageurs in Atlanta and we will be developing the right working model for this team over the coming months,” said Lewis.

These actions follow similar restructuring and employee reduction seen by many FreightTech companies since Q4 of 2022, including Amazon, FourKites, project44, Tive, Flock Freight, Uber Freight, Redwood, Loadsmart and GXO Logistics.

As freight demand has cooled, technology companies have slimmed down their operations, focusing on customer fulfillment while also showcasing profitability to shareholders and investors.

“Some of these changes tie to our customer service model changes and some are tied to running a more efficient business overall and speeding our path to profitability,” said Lewis. 

“We have an unparalleled ability to deliver flexible, efficient and high-performance trucking capacity through the digital orchestration of our trailer pool and trucking carrier partners. This unique capability is highly valued by our shippers and carriers and reduces wasted miles. We will keep betting on that,” he said.

Watch now: Why did Convoy announce a second round of layoffs?

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