Freightos, the online freight booking platform, has announced plans to lay off 50 employees, making up approximately 13% of its workforce. The company cites a general shipping slowdown as the reason behind the decision.
In addition to the layoffs, Freightos is also implementing various efficiency measures with the goal of achieving profitability without the need for additional capital. CEO Zvi Schreiber expressed confidence in these changes, stating that they will position Freightos for sustainable success in the future, regardless of cyclical downturns or upturns.
Despite these challenges, the company reports continued growth in both transactions and revenue. However, it has revised its full-year guidance downwards. For 2023, Freightos now anticipates revenue between $20.0 million and $21.2 million, compared to the previous projection of $21.2 million to $23.1 million. Likewise, transaction numbers are expected to be between 973,000 and 1.04 million, down from the initial estimate of 1.01 million to 1.12 million.
Loss before interest, taxes, depreciation, and amortization is now forecasted to range from $19.8 million to $21.5 million, as opposed to the previous expectation of $21.5 million to $24.4 million.
Freightos became a public company earlier this year through a merger with a special-purpose acquisition company. Despite challenges posed by the pandemic, the platform experienced significant growth due to increased shipping demand and freight rates. Similar to platforms like Expedia or Travelocity, Freightos allows businesses to compare prices and book shipping space on planes and ships.