Business
Freightos Announces Plan for Operational Efficiency and Cost Reduction
In light of persisting global economic headwinds, Freightos announces an operational efficiency plan expected to allow the Company to continue growth and to
About this update from Freightos Limited
[{"type":"text","content":"In light of persisting global economic headwinds, Freightos announces an operational efficiency plan expected to allow the Company to continue growth and to reach break-even on existing funds.Growth plans heighten focus on Solution and Platform development for freight forwarders, airlines and enterprise importers/exporters.Cost-savings initiatives and efficiencies include approximately 13% headcount reduction.Company provides revised FY 2023 outlook. The operational efficiency plan is expected to reduce expenses and improve Adjusted EBITDA by about $5.6 million per year.JERUSALEM, July 11, 2023 /PRNewswire/ -- Freightos Limited (NASDAQ: CRGO), a leading vendor-neutral booking and payment platform for the international freight industry, announced a new plan for operational efficiency, including cost-saving measures expected to improve Adjusted EBITDA by approximately $1.4 million per quarter beginning Q4 2023, while allowing the company to reach profitability with existing cash on hand.\n\"Despite challenging market conditions, our successful push for industry adoption of digitization has resulted in strong continued growth in total transactions and growing revenue on our Freightos platform,\" said Zvi Schreiber, CEO of Freightos. \"However, given the persistently weak market conditions, we are refining our priorities to deliver on our plan to reach profitability with the capital already raised. This includes efficiency measures that should keep us on the path to long-term, sustainable growth. Unfortunately, these measures also include making the difficult decision to reduce headcount by approximately 50 employees, or about 13% of the team. Despite the tough decision to part with teammates, I am confident that these changes will position Freightos for sustainable success in the years ahead, through cyclical downturns and upturns, as we continue to digitize global freight procurement for thousands of carriers, freight forwarders, and importers/exporters globally.\"\n\"We believe that this plan will enable us to reach positive free cash flow on existing cash reserves as planned, despite a tougher market,\" said Ran Shalev, CFO of Freightos. \"As a result of the changes, we are reducing our operating loss and raising our FY 2023 Adjusted EBITDA outlook on lower forecasted revenue, remaining on track to build and scale Freightos as a...