Around 10% of the company's global workforce is being laid off.
The shares of the company sank.
In a memo to staff, the CEO acknowledged that he had underestimated how long the e- commerce boom would last, and that he would be cutting a number of roles.
According to the securities filing, there were more than 10,000 employees at the time.
Most of the cuts will be in recruiting, support, and sales, as well as some groups that were convenient to have but too far removed from building products are being eliminated.
In the midst of economic uncertainty, technology companies have been announcing layoffs, hiring freezes and canceling job offers. The pace of hiring would be slowed by both companies. The companies that have announced layoffs are:
One of the biggest beneficiaries of the e- commerce boom was a Canadian company that makes tools for companies to sell online. As stores reopened and consumers returned to their pre-pandemic shopping habits, companies in the e- commerce sector began to worry that they wouldn't be able to sustain their high-flying growth.
shopify bet that the increasing mix of online spending over commerce in stores would jump ahead by 5 or even 10 years The company has more than doubled its employee base since the end of the year.
It's now clear that the bet didn't work out. The mix is reverting to where pre-covid data suggests it should be at this point. It wasn't a meaningful 5 year leap ahead.
In its most recent earnings report,shopify predicted that revenue growth would be lower in the first half of the year as it navigates tough comparisons. Second-quarter earnings are scheduled to be reported Wednesday.
If an employee is laid off, they will get 16 weeks of severance pay, plus one week for every year of employment at the company.
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