Shopify layoffs are here once again! After announcing its first quarter results, Canada’s Shopify has also reportedly hinted at another round of mass layoffs.
According to a Reuters report, his round of Shopify layoffs will be the second round of mass layoffs by the company. However, this time, the company is expected to trim about 20 per cent of its workforce.
The announcement of Shopify layoffs come at a time when the company announced its first qurter results and beat most of the Wall Street’s estimates. Because of this, Shopify’s shares also went up almost 8 per cent, as per international media reports.
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In 2022, Shopify laid off around 1,000 employees or almost 10 per cent of the workforce. Hence, these rounds of layoffs, despite robust quarterly earnings, come as shock in a time when the world economy is already going through fears of recession.
Further, reports suggest that Tobi Lütke, founder and CEO of Shopify has told staff that these layoffs are important as consumers are resuming old shopping habits and have withdrawn from online shopping.
“It’s now clear that our bet didn’t pay off...Ultimately, placing this bet was my call to make and I got this wrong...We’re also eliminating over-specialised and duplicate roles, as well as some groups that were convenient to have but too far removed from building products,” he wrote in the memo as per Reuters report.
