E-commerce giant Shopify laying off 10% of workforce: Report

Shopify is said to be grappling with slow growth due to a pullback in online shopping after benefiting from a Covid pandemic-fueled surge in demand.

Published on: Jul 26, 2022, 22:37:19 IST

By HT News Desk | Written by Harshit Sabarwal

Prefer HTon Google

Share via

Copy link

Multinational e-commerce giant Shopify is laying off 10 per cent of its workforce, which will affect about 1,000 employees, a report by the Wall Street Journal said on Tuesday. The report came a day before the company is set to report its quarterly results.

Shopify had 10,000 employees as of December 31, as per a regulatory filing, up from 7,000 at the end of 2020, news agency Reuters reported. (AP)

According to a memo posted on the firm's website - the report said- by chief executive officer Tobi Lutke, the most affected roles after the staff cut are recruiting, support and sales. “We bet that the channel mix -- the share of dollars that travel through e-commerce rather than physical retail -- would permanently leap ahead by five or even 10 years,” Lutke said.

“It’s now clear that bet didn’t pay off. What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point,” he added.

Shopify is said to be grappling with slow growth due to a pullback in online shopping after benefiting from a Covid pandemic-fueled surge in demand. The company had 10,000 employees as of December 31, as per a regulatory filing, up from 7,000 at the end of 2020, news agency Reuters reported.

Shopify is already facing competition from Amazon and other brick-and-mortar stores and is tying up with social media firms including Twitter and YouTube as influencers start to sell their own brands.

With the reporting of quarterly results on Wednesday, investors are keen to whether the tie-ups with social media firms to tap into the creator economy would be enough to lift Shopify out of a slump, the Reuters report further underlined.

(With inputs from Reuters)

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News on Petrol Price, Gold Rate, Silver Rates, Diesel Prices along with Income Tax Calculator