Shopify layoffs see 10% of company's staff gone

By Samantha David November 22, 2022
Shopify will be laying off 1000 employees

Among the many companies that have announced massive layoffs Shopify has followed suit by announcing to lay of 10% of its global workforce.

In a memo to staff CEO Tobi Lutke admitted that the pandemic-driven-e-commerce boom did not last as long as the company expected and amid an economic downturn, there was a major pullback in online spending.

"It’s now clear that bet didn’t pay off," Lutke said. 

"What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point. Still growing steadily, but it wasn’t a meaningful 5-year leap ahead."

As a means to correct the issue, the company will be laying off around 1,000 workers "across the company" while removing "over-specialized and duplicate roles, as well as some groups that were convenient to have but too far removed from building products," Lutke said in the memo.