Digital freight network Convoy will shutter its Atlanta office and lay off workers as part of a series of cost-cutting moves to boost profitability.
The company, which runs a digital load board, is shifting to a new customer service model that heavily rely on automation, CEO and co-founder Dan Lewis said in a LinkedIn post Thursday. The leaner support operation will have dedicated teams serving specific shippers, and Lewis said a pilot of the model yielded operational efficiency gains of 30-40%.
“This shift represents a big step forward in how we operate, but it comes at a cost. Increased automation and tighter focus have changed our staffing needs,” Lewis said. “As a result of this change we will have significantly fewer Atlanta based employees, and we can no longer justify maintaining our current office space in Atlanta.”
A small team will remain in Atlanta, though the team’s working model will change. Additional cost-cutting measures are set to affect the rest of the company, with Lewis saying there will “reductions to other teams around the company.”
“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,” the CEO said.
Convoy joins a wave of layoffs in the logistics technology space, including C.H. Robinson and Flexport, which announced job cuts last year.