Technology

Shopify lays off 10% of employees

The post-pandemic euphoria seems to have subsided. Shopify announced on Tuesday that it was laying off 10% of its workforce, or nearly 1,000 employees worldwide. The group has grown from 1,900 employees in 2016 to 10,000 in 2021 following a surge in e-commerce following the Covid pandemic.

However, the Canadian e-commerce publishing and hosting company revised down its forecasts. “Growth is still solid, but it’s not a significant five-year leap forward,” CEO Toby Lutke says in a letter to employees.

The company expects strong growth in online sales to continue post-pandemic. “Now it’s clear that this game didn’t pay off,” admits the CEO.

1.7 million sellers worldwide

While the layoffs mostly concern the hiring and sales departments, Toby Lütke explained that they also concern “overly specialized and redundant” roles.

These job cuts follow waves of layoffs and hiring freezes at other tech companies. Netflix, for example, cut about 300 jobs in June to cope with the loss of subscribers. Other companies such as Microsoft and Google have announced that they will slow down recruitment until the end of the year.

Shopify has 1.7 million merchants in 175 countries. The company has been based in France since 2018, coming to hunt the land of competitors such as Prestashop, Magento, BigCommerce and more. Last year, the number of online stores created in France increased by 61% compared to 2019, Emily Benoît-Vernet, Shopify’s area manager for France, told last year.

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