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.
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.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)
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