Restructuring cuts more Convoy jobs

Seattle-based digital freight network Convoy is closing its Atlanta office and laying off workers.

Convoy has fired workers three times in a year.

CEO and co-founder Dan Lewis announced the restructuring on LinkedIn Thursday as Convoy moves to a new customer service model that automates many employee tasks.

This change advances our operations, but it costs. “Automation and tighter focus have changed our staffing needs,” Lewis wrote.

Atlanta Convoy will close. The post says it will keep a small city team. Other regions will lose customer service and other jobs.

A spokesperson said “We have restructured to further streamline and improve our shipper experience.” The company did not disclose job losses.

In 2015, Convoy modernized freight brokerage, a fragmented and analog business that matches shippers and truckers. Its software automates trucker-shipper connections. It now offers a fuel card, quick payments, and a drop-and-hook service that lets shippers pre-load Convoy trailers for truckers to pick up during more flexible windows.

Convoy cut 7% of its workforce in June three months after raising $260 million equity and debt. Hercules Capital led the $100 million venture-debt investment and Baillie Gifford and T. Rowe Price led Series E equity. Then-valued Convoy was $3.8 billion.