Forto Faces Major Setbacks with 200 Job Cuts

The Berlin-based digital freight forwarder Forto is reportedly laying off approximately 200 employees, which accounts for about one-third of its workforce. This significant reduction comes amid a series of leadership changes and a challenging economic landscape.

Founded in 2016 as Freighthub, Forto has been at the forefront of digitizing container transport logistics, primarily focusing on air and sea freight. Over the years, the company has raised significant funding, totaling around EUR500 million from prominent investors, including Softbank and Northzone. At its peak, Forto achieved a valuation of $2.1 billion in 2022 and has been working with major clients such as Edeka, Zalando, and Obi.

Despite its rapid growth, the company has faced increasing pressure in recent years. Previous rounds of layoffs occurred in 2022 and 2023, indicating a trend that has now culminated in this latest round of job cuts. Forto has not officially commented on the layoffs but has indicated a shift in focus towards refining its commercial strategy, enhancing operational excellence through artificial intelligence, and fostering a performance-driven culture.

Leadership at Forto has also seen significant changes recently. In February, co-founder Michael Wax resigned from his position as CEO, with the former CFO Guillaume Petit-Perrin stepping in as his replacement. This leadership transition marks a notable shift, as none of the original founders remain actively involved in the company's operations.

With the changing economic conditions and internal restructuring, Forto's future remains uncertain. The company is attempting to realign its business strategy to adapt to the new market realities, which may include further adjustments to its workforce.