VihuThe parcel delivery company confirmed that it had laid off 19% of its employees, or about 65 jobs. like First reported by informationThese layoffs came after Veho’s revenue increased nearly 90% in 2023.
“We have undertaken a reorganization of our corporate team to improve efficiency, accelerate our path to profitability and the ability to invest more in areas that directly impact our customers’ needs and growth,” according to a company statement sent to TechCrunch.
The logistics technology company, founded by Itamar Zur and Fred Cook in 2016, is pursuing the last-mile segment of delivery — how packages get from fulfillment centers to the customer’s door.
In early 2022, Fehu was not in bad shape. The company grew its revenue by 40% and its customer base by 20% compared to the previous year. There were also plans to jump from 500 employees to 2,000 by the end of 2022.
It also had good fortune in venture capital during the pandemic as shopping shifted online. At the time, the company raised $170 million in Series B funding in a round, led by Tiger Global Management, taking the company’s valuation to $1.5 billion.
That was after announcing $125 million in Series A funding two months ago, a round that pushed Veho into unicorn territory. General Catalyst led that tour.
With over $300 million in venture-backed financing at its disposal, Veho has added markets and It brought in a number of executives At the end of 2022, including Eric Swanson as Chief Commercial Officer and Brian McDevitt as Chief Revenue Officer.
In the summer of 2023, the company entered 11 New England markets He has worked with clients such as Kroger, Saks, Nordstrom, Misfits Market, HelloFresh, and Nespresso. At the time, Veho said it had 910 employees in its corporate and warehouse teams, and was looking to fill additional positions.
Even with continued growth, the company was not without problems last year, according to The Information. This included laying off customer support staff and drivers and moving those jobs overseas.
Then Swanson left in March, he said LinkedIn profile. in December, Fehu appointed Deborah Surette, former Vice President of Sales at Oracle, for this role. McDevitt’s social media profiles still indicate he is CRO, however, The Information reported that he also left.
Increasing shipping rates and consolidation continue 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 as we build on our strong momentum and record peak season in 2023.”