Freightos, an Israeli freight booking and payment platform, is laying off approximately 50 employees, representing 13% of its workforce, which will reduce total staff to around 350. This cost-cutting measure, announced in late 2023, aims to accelerate the company's path to profitability amid persistently weak market conditions. The move is expected to improve adjusted EBITDA by about $1.4 million per quarter. Concurrently, Freightos downgraded its full-year revenue and transaction outlook for the second time in 2023, reflecting broader challenges in the logistics and supply chain digitization industry. CEO Zvi Schreiber emphasized that these efficiency measures are designed to ensure long-term, sustainable growth despite the difficult decision to reduce the team.
