Package delivery company Veho has recently laid off approximately 65 corporate employees, constituting 19% of its corporate/exempt workforce. The move follows a remarkable 90% revenue surge in 2023, as reported by The Information. In response to inquiries from TechCrunch, Veho released a statement, stating, “We conducted a reorganization of our corporate team to improve efficiencies, accelerate our path to profitability, and be able to invest more in areas that directly impact our clients’ needs and our growth.”
Founded in 2016 by Itamar Zur and Fred Cook, Veho specializes in the last-mile section of delivery, focusing on how packages travel from fulfillment centers to the customer’s doorstep. In early 2022, Veho experienced significant growth, with a 40% increase in revenue and a 20% expansion in its customer base compared to the previous year. Plans were in place to expand its workforce from 500 employees to 2,000 by the end of 2022.
Veho secured $170 million in Series B funding during the pandemic, led by Tiger Global Management, pushing its valuation to $1.5 billion. This came after a $125 million Series A funding round, elevating Veho to unicorn status.
With over $300 million in venture-backed funding, Veho expanded into new markets and brought in key executives in 2022, including Eric Swanson as Chief Commercial Officer and Brian McDevitt as Chief Revenue Officer. By the summer of 2023, Veho was operating in 11 New England markets and partnering with major clients such as Kroger, Saks, Nordstrom, Misfits Market, HelloFresh, and Nespresso.
Despite its growth, Veho faced challenges in 2023, including laying off customer and driver support staff and relocating those roles overseas. Executive changes also occurred, with Eric Swanson leaving in March and Brian McDevitt reportedly departing.
Veho remains optimistic about its future, emphasizing its strong capital position and building on the momentum of a record peak season in 2023. The logistics industry faces challenges due to increased freight rates and consolidation, and Veho is closely monitoring the situation as it navigates these complexities.
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