E-commerce platform Shopify announced it will slash 10 percent of its workforce — around 1,000 employees across verticals.
Shopify CEO Tobi Lutke said in a statement that Shopify has to go through a reduction in workforce that will see about 10 percent leave by the end of the day.
Most of the impacted roles are in recruiting, support, and sales, and across the company. “We’re also eliminating over-specialized and duplicate roles, as well as some groups that were convenient to have but too far removed from building products,” Tobi Lutke said.
The company had 10,000 employees as of Dec. 31, regulatory filing showed, up from 7,000 at the end of 2020, Reuters news report said. Shopify said its employee base increased from 1,900 in 2016 to around 10,000 in 2021.
Those affected in the layoff will get 16 weeks of severance pay, plus an additional week for every year of tenure at Shopify.
“We’ll remove any equity cliff, and extend any medical benefits. Knowing that Shopify is just one stop on a career journey, we’d like to help set everyone up for success as they take their next steps. Shopify will offer outplacement services with access to career coaching, interviewing support, resume crafting, etc.,” Tobi Lutke said.