Shopify (SHOP) to Cut 10% of Staff, With Most Workers Gone by Day’s End

The chief executive officer of the Canadian e-commerce firm acknowledged that the company's decision to expand quickly didn't work out.

About 1,000 jobs are going to be eliminated at the company. According to a memo posted on the company's website, most of the affected roles are in sales.

It was the biggest drop in almost a month. The job cuts were reported by the WSJ.

The channel mix, the share of dollars that travel through e-commerce rather than physical retail, would leap ahead by five or even 10 years because of the Pandemic, according to a letter written by the author.

That bet didn't work out. The mix is reverting to where pre- Covid data suggests it should be.

In 2020 and 2021,shopify was one of the hottest stocks. It crashed this year due to an easing of Covid-19 restrictions and an economic cooling-down. This year, the shares of the company have fallen by more than 70%.

The company reported a huge profit miss in the first quarter, and analysts have lowered their expectations for the second quarter.

Revenue for the second quarter is expected to be about the same as the first quarter.

A spokeswoman for the company said that those who lose their jobs this week will get 16 weeks of severance and additional benefits, including an allowance to buy laptops.