Shopify is Gearing Up to Lay Off 10% of its Workforce

August 3, 2022 | | Updated: January 27, 2023

Shopify announced that it is laying off 10% of its current workforce. The company stated that it had misjudged the market trends and hired too many employees. A letter published on the company’s website says that they had rapidly employed during the pandemic to accommodate an increased eCommerce shopping trend which later failed to materialize. They had anticipated the Covid-era hike in ecommerce trends to continue and expected a heightened adoption of online shopping. The departments that face majority cuts would be recruitment, support roles, and sales. The company is also cutting down on over-specialized and duplicate positions. The load shedding also involves the group of employees hired for convenience but not actively engaged in product building. Reports say that the laid-off employees received a good severance package.