Shopify is laying off 10% of its employees

Shopify is laying off 10% of its employees

BETTING À DAY

The Canadian online retail giant, Shopify, announced on Tuesday the layoff of 10% of its employees. 

The 1,000 affected employees have been notified Tuesday. 

According to the company, most of the layoffs are for members working in recruitment and sales.

All workers laid off will receive severance pay equivalent to 16 weeks , plus an additional week for every year you spend with Shopify.

“For a company like ours, this news will be hard to digest,” Founder and CEO Tobi Lütke wrote. in an email to staff that was later posted on the company's website.

The Ottawa-based company, in exchange for a royalty, had seen a major boost, in 2020, when months of the COVID-19 pandemic.

Shopify had quickly become the Canadian company with the highest value in the country. 

It had made various decisions, believing that the growth would be permanent. However, Tobi Lütke told employees in his email that the company is at a similar point to where it was before the pandemic.

Shopify was worth $300 billion in 2020; today it is estimated at $50 billion. Lower demand, since 2021, explains the rapid decline.

The company's shares fell about 15% when the Toronto Stock Exchange opened on Tuesday.