Forto Cuts 200 Jobs as Digital Freight Forwarder Sharpens Commercial Focus

Digital freight forwarding platform Forto laid off 200 employees on April 8, 2025, representing 33% of its workforce as the company restructures operations to focus on core commercial priorities. The Berlin-based logistics technology firm announced the significant workforce reduction amid ongoing challenges in the global freight forwarding sector and increased pressure to achieve profitability.

The layoffs affect approximately one-third of Forto's total staff, marking one of the most substantial workforce reductions in the digital freight forwarding space this year. Company leadership cited the need to streamline operations and concentrate resources on the most profitable business segments as primary drivers behind the decision.

Context of the Decision

Forto's workforce reduction reflects broader market pressures facing digital freight forwarders following years of rapid expansion during the pandemic-era logistics boom. The company, like many logistics technology firms, scaled aggressively between 2020 and 2022 to meet surging demand for digital supply chain solutions. However, normalized trade volumes and increased competition have forced a strategic reassessment of operational priorities.

The restructuring comes as traditional freight forwarding margins face compression from both established players and emerging technology platforms. Forto's decision to sharpen commercial priorities suggests a pivot toward higher-margin services and away from volume-based growth strategies that characterized the industry's recent expansion phase.

Market conditions in 2025 have proven particularly challenging for mid-sized digital freight forwarders, with many companies struggling to differentiate their offerings in an increasingly crowded marketplace. Rising interest rates and reduced venture capital availability have also pressured companies to demonstrate clear paths to profitability rather than prioritizing growth at all costs.

Impact on Operations

The layoffs likely affected multiple departments across Forto's operations, with technology development, customer service, and business development teams expected to bear significant impacts. Given the scale of the reduction, both the company's Berlin headquarters and international offices probably experienced staff cuts.

Forto's sales and marketing functions may have seen particular reductions as the company shifts focus from customer acquisition to optimizing existing client relationships. The freight forwarding service provider has maintained that core operational capabilities remain intact despite the workforce reduction.

The company's technology platform, which digitizes traditional freight forwarding processes, continues operating normally. However, the reduced headcount may slow new feature development and limit expansion into additional trade lanes or service offerings in the near term.

Company Financial Background

Founded in 2016, Forto raised significant venture capital funding during the logistics technology investment boom. The company secured $240 million in Series C funding in 2021, achieving a valuation exceeding $1 billion and joining the logistics unicorn club alongside competitors like Flexport and Freightos.

However, like many logistics technology companies, Forto has faced pressure to justify its premium valuation amid normalizing market conditions. The freight forwarding industry's traditionally low margins have proven challenging for venture-backed companies seeking the high returns typically expected by growth investors.

The 2025 layoffs suggest Forto is prioritizing cash flow management and operational efficiency over rapid expansion, a common strategy among logistics technology firms facing extended timelines to profitability. This approach aligns with broader venture capital market trends favoring sustainable business models over pure growth metrics.

Industry Outlook

Forto's workforce reduction mirrors similar moves across the digital freight forwarding sector. Competitors including Flexport, Shipamax, and other logistics technology platforms have implemented layoffs as the industry adjusts to post-pandemic market realities.

The freight forwarding service sector faces ongoing consolidation pressure, with smaller players struggling to compete against both established logistics giants and well-funded technology platforms. Traditional freight forwarders have also invested heavily in digital capabilities, intensifying competition for technology-focused newcomers.

Industry analysts expect continued workforce reductions across logistics technology companies throughout 2025 as firms focus on core competencies and sustainable growth models. The sector's evolution toward profitability-focused strategies represents a maturation from the rapid expansion phase of recent years.

Conclusion

Forto's decision to reduce its workforce by 200 employees signals a strategic shift toward operational efficiency and commercial focus. While painful for affected employees, the restructuring positions the company to compete more effectively in an increasingly challenging freight forwarding market. The move reflects broader industry trends as digital logistics platforms adapt to normalized market conditions and investor expectations for sustainable profitability.