Veho’s Corporate Job Cuts Amid Growth
Veho, a package delivery company, has confirmed a significant reduction in its corporate workforce, with approximately 65 jobs, constituting 19% of its corporate/exempt employee headcount, being eliminated. This decision comes on the heels of Veho experiencing substantial revenue growth of nearly 90% in 2023.
Restructuring for Efficiency
In a statement to TechCrunch, Veho cited a reorganization of its corporate team aimed at enhancing efficiencies, expediting the path to profitability, and reallocating resources to areas directly impacting client needs and company growth.
Company Background
Founded in 2016 by Itamar Zur and Fred Cook, Veho specializes in last-mile delivery solutions, focusing on transporting packages from fulfillment centers to customers’ doorsteps. Despite initial success and ambitious expansion plans, including a projected increase in employee count from 500 to 2,000 by the end of 2022, the company faced operational challenges amid its growth trajectory.
Funding and Expansion
Veho experienced a surge in venture capital investment during the pandemic-induced shift towards online shopping. Securing $170 million in Series B funding, led by Tiger Global Management, the company’s valuation soared to $1.5 billion. This followed a $125 million Series A round that propelled Veho into unicorn status, with General Catalyst leading the investment.
Recent Developments
Despite expanding into new markets and forging partnerships with prominent retailers like Kroger, Saks, and Nordstrom, Veho encountered internal issues, including layoffs within its customer and driver support teams. Additionally, executive departures, including that of Chief Commercial Officer Eric Swanson, have been noted, reflecting potential turbulence within the organization.
Industry Challenges and Outlook
The logistics industry faces challenges from increased freight rates and ongoing consolidation. However, Veho remains optimistic about its future prospects, emphasizing its strong capital position and momentum following a record peak season in 2023. As the company navigates these challenges, its focus remains on operational efficiency, client satisfaction, and sustained growth in the competitive delivery market.
