Canadian eCommerce company Shopify Inc. informed employees on July 26 that it is laying off about 1,000 workers, effectively immediately.
“Shopify has to go through a reduction in workforce that will see about 10 percent leave by the end of the day,” said CEO and founder Tobi Lütke in the email, posted on the company’s website on July 26.
Most of the impacted roles are in recruiting, support, sales, and over-specialized and duplicate roles, as well as some groups that “were convenient to have but too far removed from building products,” Lütke said.
Lütke said he decided to increase the staff in the company as it was predicted that the eCommerce retail growth rate was going to rise significantly during the pandemic. However after 2021 the rate of online retail sales started to decline to previously predicted levels of business without the factors of the lockdowns….