Former Amazon executive Dave Clark, who was ousted as Flexport CEO after just one year in the job, responded to the company’s founder and board, calling recent reports on the logistics company “deeply troubling.”
Clark made the comments Monday in a lengthy post on the social media site X after a Report from CNBC Which provided new insight into his final days at Flexport, an $8 billion shipping and customs brokerage startup. Clark, handpicked by founder Ryan Petersen for the top job, said he discovered widespread problems when he joined Flexport in September 2022, including “a revenue forecasting model that was consistently delivering overly optimistic output.”
Flexport could not be reached for comment. TechCrunch will update this article if Flexport responds.
the Share on X (formerly known as Twitter) reads:
Operating with integrity and treating colleagues with respect is critical to the success of any company, which, as a shareholder, makes today’s CNBC story and other recent reporting on Flexport deeply troubling. Despite my short tenure, I care about the company and its employees and want it to succeed.
When I joined Flexport as co-CEO in September 2022, I found a company lacking in operations and financial discipline, including numerous customer-facing issues that resulted in the loss of a significant number of customers and a revenue forecasting model that was consistently delivering overly optimistic outputs. The company had missed cost, margin, and revenue forecasts for several quarters before my arrival. My future plan for Flexport, vetted by Ryan and presented to the Board, focused on growth and moving to align costs with revenue, not a revenue number based on hope – but one grounded in reality.
Although the issues at Flexport were more extensive than I thought they would be when I agreed to join, I never shied away from a challenge. During my time at Flexport, where I worked alongside a talented team, we successfully transitioned to a new technology and product organizational model, integrated a major acquisition and quickly launched an end-to-end supply chain technology product, all while simultaneously improving Flexport’s operations and internal processes. .
Flexport faces serious internal and industry challenges that require serious leadership, and I sincerely hope they find a successful path. But for me, it’s time to build something new somewhere else… and then who knows.
Clark’s sudden departure was just the beginning of the turmoil within the company.
The comments are the latest in the internal drama between Clark, Petersen and the board that has been unfolding behind the scenes this summer, just a few months after the company acquired Shopify’s logistics unit. The issue came to a head in September when Clarke was forced to resign.
The internal executive drama did not end with Clark’s departure.
Two days after Clark abruptly stepped down as CEO, Petersen said Flexport would rescind dozens of hiring offers and look to lease the company’s office space as it looks to control costs and “get its house in order,” according to a post on the company’s website. Social Media
Petersen’s main complaints about Clark’s leadership — at least in terms of public comments he made — centered around costs, specifically hiring and expanding too quickly. However, Clark’s appointment and his big “entrepreneurial” vision for Flexport were no secret. Clark was co-CEO alongside Petersen during his first six months on the job. Petersen then assumed the position of Executive Chairman.