Delivery Startup Veho Cuts Staff Despite Revenue Jump

Many logistics startups were forced to make deep layoffs last year as their businesses slumped. Package-delivery startup Veho, in contrast, grew its revenue nearly 90% last year. Yet it’s also been cutting jobs.

Veho cut 19% of its corporate workers last week, a person close to the company said, layoffs that came just a few months after it outsourced many of its customer service roles to overseas contractors. The layoffs, which affected at least 65 people, according to three people familiar with the cuts, are an effort to slash Veho’s losses. The move highlights a challenge that has plagued many logistics startups: It’s expensive to expand warehouses and hire more people, which makes it tough for new companies to scale up quickly without burning through cash.