Shopify laying off 20% of staff, selling Shopify Logistics

May 4 2023, 1:09 pm

Canadian e-commerce giant Shopify has announced that it’s laying off 20% of its workforce and selling off Shopify Logistics.

In a letter published Thursday, Shopify CEO Tobias Lütke said these moves are being made to “pay unshared attention to [Shopify’s] mission.”

“There are a number of consequences to this, and I don’t want to bury the lede: after today, Shopify will be smaller by about 20%, and Flexport will buy Shopify Logistics; this means some of you will leave Shopify today,” he wrote. “I recognize the crushing impact this decision has on some of you and did not make this decision lightly.”

Employees affected by the reductions were told they would get follow-up emails shortly.

Lütke also outlined ways Shopify will support those leaving the company today, including providing them with a minimum of 16 weeks severance plus a week for every year at Shopify, as well as medical benefits and access to Shopify’s employee assistance program for the same period.

“All office furniture we provided is yours to keep,” the CEO added. “We legally need the work laptop back, but we’ll help pay for a new one to replace it. You’ll have continued free access to the advanced Shopify plan should you opt to take an entrepreneurial path in future.”

Impacted staff’s Slack accounts and internal emails will remain open so they can “share farewells,” too.

“You’ll have a chance to talk more about this when you meet with a leader later today,” Lütke added.

Imaan SheikhImaan Sheikh

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