Shopify is cutting 20% ​​of its workforce; shares rise

Norman Ray

Global Courant 2023-05-04 20:40:42

An employee works at Shopify’s headquarters in Ottawa, Ontario, Canada.

Chris Wattie | Reuters

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The cuts mark the second round of layoffs for the Canadian e-commerce company. Shopify laid off 10% of its workforce last July after Lütke said the company misjudged how long the pandemic-fueled e-commerce boom would last.

Lütke said Shopify is slimming down as a company as it focuses on its core business of creating tools for businesses to sell products online. The company announced separately Thursday that it is transferring its logistics unit to Flexport, a sale that also includes Deliverr, the last-mile delivery company it acquired for $2.1 billion last May.

Shopify also sells 6 River Systems, the warehouse robot manufacturer it acquired for $450 million in 2019, to British retail technology company Ocado. The terms of the Flexport and Ocado deals were not disclosed.

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