Overthrow Amazon's 'Shopify' kills 10% of employees
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Shopify, a Canadian multinational e-commerce company that is also described as ' Amazon's rival, ' has been found to sever about 1,000 people, or 10% of its employees.
Changes to Shopify's team
https://news.shopify.com/changes-to-shopifys-team
Shopify Says It Will Lay Off 10% of Workers, Sending Shares Lower --WSJ
https://www.wsj.com/articles/shopify-to-lay-off-10-of-workers-in-broad-shake-up-11658839047
Shopify CEO Tobia Lütke said in a statement on July 26, 2022, 'We had to make adjustments, and as a result, we had to say goodbye to some people. We deeply apologize for this, 'he said.
'Before the pandemic, e-commerce growth was stable and predictable, but it has grown rapidly due to the pandemic, and I don't know if this will be temporary or a new normal,' Lütke said. But we bet on a permanent leap five or ten years from now, and now it's clear that this bet didn't pay off. ' He explained that the cause was a mistake in the outlook for the rapid growth of the commerce industry and the decision to expand the business in anticipation of it.
Below is a graph of the growth rate of the e-commerce industry, based on data from the US Census Bureau by Lütke. E-commerce sales surged after 2020 due to the demand for nesting due to lockdown, but from the beginning of 2022, the outlook for the entire U.S. economy became uncertain due to concerns about inflation and recession, and the e-commerce industry Was forced to retreat.
by US Census Bureau
Shopify hasn't disclosed how many employees will be fired, but the Wall Street Journal reports that it will cut 1,000 people, or 10% of all employees.
According to reports, Shopify's annual revenue growth rate was 86% in 2020 and 57% in 2021, and sales in the same year reached about 4.6 billion dollars (about 630 billion yen). In response to this, the company significantly increased the number of employees from 1,900 in 2016 to about 10,000 in 2021, but from the beginning of 2022, the stock price has risen due to slowing growth and weak performance. It has fallen by more than 80% since its peak.
Lütke, who apologized to employees for the dismissal, promised to pay severance pay, extend medical benefits and provide reemployment support services to retirees.
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