KeepTruckin, which provides electronic logging devices to truckers, has had to make the difficult decision of downsizing by 18%. The company has a workforce of 1900 people spread across various countries, and the layoffs will affect over 340 employees, including those based out of the Pakistan offices.
In the official announcement made regarding the layoffs, the company stated:
“Due to the changing conditions the global economy is facing in light of COVID-19,
KeepTruckin has announced to lay off approximately 18% of our global workforce.”
Terminated employees will receive a letter notifying them about the end of their employment as well as a release agreement, which they’ll need to sign to receive severance benefits.
According to the internal letter, KeepTruckin won’t be paying bonuses for 2019. In addition, salaries will be reduced by 10% for all employees making more than $50,000 annually.
Co-founders, Ryan Johns, and Obaid Khan will be taking 50% cuts to their pay whereas, Shoaib Makani, the co-founder and CEO, will be taking no pay until the company successfully navigates the COVID-19 crisis.
The company noted that it was impossible to predict the full impact of COVID-19 on the global economy and how it would flow through to their customers, but it was clear that economic output in North America was contracting rapidly.
While consumer demand for household necessities amid the coronavirus crisis has increased, that has not been enough to offset the broader contraction. Makani told Forbes by email that internal data showed a 12% reduction in vehicle activities in its network over the past two weeks, with the hardest-hit regions, including the West Coast and New England, declining by more than 20%.
KeepTruckin has 65,000 customers and its revenues surpassed $60 million in 2018. It expected to hit over $180 million in revenues in 2019.