project44 CEO Explains Staff Reductions Amid Changing FreightTech Landscape
Learn why project44 is letting go of 116 team members and how they're adapting to shifting dynamics in the FreightTech industry
A Shakeup at project44
In a surprising move, project44, a leading supply chain technology company, has laid off 116 of its team members. While this might raise eyebrows, CEO Jett McCandless has good reasons for this decision.
Navigating Uncharted Waters
McCandless cites the ever-changing nature of the shipping and logistics industry. The pandemic wreaked havoc on global supply chains, leading to a surge in demand for transparency and visibility. However, as the chaos settles, companies have deprioritized certain projects, impacting project44's sales cycles.
Shipping costs reached new heights between 2020 and 2022, especially for trans-Pacific containers. But now, deflationary pressures are pushing these costs down. On the flip side, labor costs and interest rates are on the rise, impacting businesses across the board.
A Strategic Shift
During the supply chain crisis, project44 went on an acquisition spree, strengthening its offerings. Now, their focus shifts towards profitability through a more conservative approach to spending. Every dollar should make a significant impact.
The "Big V" Vision
project44 pioneered real-time visibility in transportation. Now, their sights are set on "big V" – inventory-in-motion visibility. This expands their reach from the middle mile to the doorstep of consumers, offering unique insights.
Despite setbacks and challenges, project44 remains resilient with over $100 million in the bank. As McCandless notes, the actions taken today will define who thrives in this ever-evolving landscape.
Source: Jett McCandless for FreightWaves