Shopify to Lay Off 10% of Global Workforce in Seeing an eCommerce Downturn After COVID-19

Shopify Inc. with 10,000+ employees now going to cut its 10$ workforce which counts to 1,000 job cuts.

Photo by charlesdeluvio on Unsplash

The Canadian multinational e-commerce giant that is famous for helping small businesses to go online and sell digitally, had a bet on COVID-19 with hopes that people will be buying more online even after the pandemic.

However, the bet is lost in the hands of Tobias Lütke as he sent a memo to the staff of the company unveiling the intentions to lay off about 10% workforce of Shopify which may also result in recruitment to focus on what matters the most.

Shopify will be rolling back their bet on eCommerce growth which the founders made during the pandemic from seeing the tremendous growth creating hopes of the same after the clouds of COVID-19 go away.

However, the bubble is now bursting as Shopify announced to cut jobs in all its divisions, and the staff will be notified about the same on Tuesday with the names of employees who are going to say goodbye to the company for all the good reasons.

"It's now clear that bet didn't pay off," said Mr. Lutke in the letter.

The Ottawa-based company saw an 80% stock market share growth and had huge sales making the revenue soar but founders are now not in the same confidence as they revealed that consumers are turning to old shopping habits and pulling back the eCommerce road trip.

There are many other tech companies and SAAS products that are announcing layoffs. Let's see who's next.