- Shopify’s CEO Tobi Lütke announced Thursday that the company is cutting 20% of staff.
- Fear has been growing among employees over impending layoffs over the last few days.
- The company previously laid off 1,000 people in 2022 amid slow growth post-pandemic.
Shopify’s CEO Tobias Lütke announced early Thursday that the company is cutting 20% of its workforce and selling the majority of its logistics business to supply chain technology company Flexport.
In a note to employees on Thursday, Lütke said: “I recognize the crushing impact this decision has on some of you, and did not make this decision lightly.”
He continued: “This is a consequential and hard week. It’s the right thing for Shopify but it negatively affects many team members who we admire and love working with.
This is one of those times where both right and hard are true at the same time. My belief is that any enduring company makes a habit of doing the right thing, even if easy outs present themselves. Yet it doesn’t get easier to make a decision like this, and I hope it never does,” he added.
Insider reported earlier this week that employees become increasingly concerned about the possibility of layoffs after several “bursts,” which is a Shopify name for team off-sites, and other events, were canceled.
The e-commerce giant laid off 10% of its staff — 1,000 people — in July 2022 after the company’s growth slowed post-pandemic. The company experienced success after the COVID-19 pandemic fueled an acceleration of interest in e-commerce and mistakenly expected this growth to continue.
If you’re a Shopify employee with a story to share, contact mstone@insider.com or on the encrypted messaging app Signal at (646) 889-2143 using a nonwork phone.
