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.