Shopify Cuts 20% Of Staff, Sells Its Logistics Unit

Shopify's CEO Tobias Lütke has announced that the company is cutting 20% of its workforce and selling the majority of its logistics business to supply chain technology company Flexport, Sawdah Bhaimiya and Mary Hanbury reported for Business Insider.

Photo Insert: Shopify employees have been concerned for weeks about the possibility of layoffs after several "bursts," which is a Shopify name for team off-sites and other events, were canceled.

In a note to employees, Lütke said: "There's no way to make this good news, but we designed a package that will attempt to make it the best possible version of a bad day."

Shopify employees have been concerned for weeks about the possibility of layoffs after several "bursts," which is a Shopify name for team off-sites and other events, were canceled.

The e-commerce giant laid off 10% of its staff — 1,000 people — in July 2022 after the company's growth slowed post-pandemic. The company experienced success after the COVID-19 pandemic fueled an acceleration of interest in e-commerce and mistakenly expected this growth to continue.

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