Shopify Layoffs 2026: What’s Happening & Severance Rights in Canada

Samfiru Tumarkin LLP is investigating reports that Shopify has conducted another significant workforce reduction in 2026.

The update comes after the Canadian e-commerce giant kicked off the year with sweeping job cuts — impacting employees in its partnerships division. (BetaKit)

If you were laid off by Shopify in Canada, don’t sign a severance package until you understand your full legal rights.

Shopify Layoffs: A Brief History

Shopify has gone through several major rounds of layoffs in recent years:

January 2026

• Layoffs in the partnerships division
• Entire teams reportedly eliminated
• Described internally as restructuring or reorganization

November 2025

• Job cuts aimed at “removing layers that created complexity without additional merchant value”

May 2023

• Approximately 20% of Shopify’s global workforce laid off
• Sale of logistics division to Flexport

July 2022

• Roughly 10% of staff laid off following post-pandemic slowdown

This history matters because repeated restructuring affects how employers calculate severance, particularly for long-service or senior employees.

Severance Pay for Shopify Employees

In Canada, Shopify severance packages often provide only the minimum required by employment standards legislation — but that’s not the full legal entitlement for most employees.

Under  common law, severance pay is based on various factors, including:

• Length of service
• Age
• Position and seniority
• Availability of comparable employment

Depending on these factors, Shopify employees may be entitled to many months — sometimes up to 24 months — of compensation, not just the statutory minimum.

Common Problems with Severance Packages

We regularly see severance offers that:

• Rely only on minimum ESA/ESC entitlements
• Exclude or undervalue RSUs, stock options, or ESPPs
• Ignore bonuses, commissions, or variable pay
• Cut off benefits too early
• Include short deadlines (often 5–10 days)
• Pressure employees to sign a full and final release

It’s crucial for Shopify employees in Canada to be aware of these red flags as they often signal that an employer has offered far less severance than the law requires.

RSUs, Stock Options, and Equity After a Shopify Layoff

Equity compensation is one of the most contested issues in Shopify terminations.

Key questions include:

• Do RSUs continue to vest during your notice period?
• Are unvested grants wrongfully cancelled?
• Does your employment contract actually limit equity on termination?

In many cases, employees are entitled to additional equity value beyond what the company initially offers.

Is a Shopify Layoff a Wrongful Dismissal?

A wrongful dismissal occurs when an employer terminates an employee without providing proper notice or pay in lieu, as required by common law.

You may have a wrongful dismissal claim if:

• Your severance is far lower than comparable court awards
• Your termination clause is unenforceable
• You were pressured to sign quickly
• Equity, bonuses, or commissions were excluded
• You were laid off during medical, disability, or parental leave
• A so-called “restructuring” was used to justify inadequate severance

Importantly, layoffs tied to AI or restructuring don’t reduce an employee’s legal entitlement to severance.

Laid Off at Shopify? Next Steps

If you’ve been laid off by Shopify:

• Don’t sign anything right away
• Collect your employment contract, equity plans, and pay records
• Use a severance calculator to estimate your entitlement
• Speak with an employment lawyer before the deadline

You generally have up to 2 years to pursue a legal claim — even if you’re given a much shorter internal deadline.

Laid Off by Shopify? Get Legal Advice Before You Sign

Samfiru Tumarkin LLP has helped over 50,000 Canadians recover the compensation they are owed after layoffs, including severance, bonuses, benefits, and equity.

If Shopify laid you off in Canada, start by estimating what you may be entitled to under the law using our Severance Pay Calculator.

Once you understand the potential value of your claim, speak with an employment lawyer before signing anything.

You can request a consultation to have a lawyer at our firm review your Shopify severance package.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.