Shopify To Lay Off 10% of Workers in Broad Shake-Up

Shopify is cutting roughly 1,000 workers, or 10% of its global workforce, rolling back a bet on e-commerce growth the technology company made during the pandemic, according to an internal memo. From a report: Tobi Lutke, the company's founder and chief executive, told staff in a memo sent Tuesday that the layoffs are necessary as consumers resume old shopping habits and pull back on the online orders that fueled the company's recent growth. Shopify, which helps businesses set up e-commerce websites, has warned that it expects revenue growth to slow this year, and its shares have tumbled nearly 80% since they peaked in November. It reports quarterly results on Wednesday. Mr. Lutke said he had expected that surging e-commerce sales growth would last past the Covid-19 pandemic's ebb. "It's now clear that bet didn't pay off," said Mr. Lutke in the letter, which was reviewed by The Wall Street Journal. "Ultimately, placing this bet was my call to make and I got this wrong." The Ottawa-based company will cut jobs in all its divisions, though most of the layoffs will occur in recruiting, support and sales units, said Mr. Lutke. "We're also eliminating over-specialized and duplicate roles, as well as some groups that were convenient to have but too far removed from building products," he wrote. Staff who are being let go will be notified on Tuesday.

Read more of this story at Slashdot.