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E-Commerce Giant Shopify Will Lay Off 10% Of Its Workforce!

Shopyfy lays off 10 percent of its workforce
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According to a WSJ report, the Ottawa-based NYSE-listed e-commerce provider Shopify is laying off roughly 1,000 workers, or 10% of its global workforce. Tobi Lütke, the company’s founder and CEO, informed staff in a memo 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 has warned that it expects revenue growth to slow this year.

Shopify’s shares fell 14% to $31.55 on Tuesday after WSJ reported on the layoffs. The shares have fallen more than 80% since they peaked in November 2021 near $175, adjusting for a recent stock split. The company has a market cap of around $39 billion.

Shopify is a leading e-commerce platform (www.shopify.com) offers online merchants a suite of services, including payments, marketing, shipping, and customer engagement tools. It is estimated that approximately 1.6 million websites ran on the Shopify platform and generated a revenue of more than $4.6 billion in 2021.

Tobi Lütke 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. Ultimately, placing this bet was my call to make and I got this wrong.,” Lütke said in the letter.

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