Shopify announces additional 20% workforce reduction amid strategic changes

Less than a year after cutting its workforce by 10 per cent, Shopify is trimming its headcount even further.

In an open letter to staff on May 4, CEO Tobi Lutke said the e-commerce giant is reducing its workforce by approximately 20 per cent and selling Shopify Logistics to Flexport, a supply chain management company.

“For the past year we’ve been subtracting everything that’s in the way of making the best possible product,” Lutke said.

“This is extremely important, because we are heading into a decade of high velocity and massive change. We will require speed, agility, and a great deal of innovation.”

According to reports, Shopify had around 10,000 employees before eliminating 1,000 jobs last summer.

20 per cent of the remaining workers would amount to about 1,800 people.

Shopify employees hired by Flexport

• Seniority protection: Flexport must recognize your total length of service, including time at Shopify. If terminated later, your severance will reflect this combined service.
• Review your contract: If Flexport offers a new employment contract, consult an employment lawyer at Samfiru Tumarkin LLP. We’ll ensure it doesn’t limit your severance or erase your seniority.
• Declining Flexport’s offer: If you decline a job offer due to significant changes in your role, location, or pay, you could still qualify for full severance from Shopify. Contact us to learn your rights before deciding.

Shopify employees not hired by Flexport

Employees who aren’t hired by Flexport are entitled to full severance pay from Shopify Logistics.

📺 WATCH: Everything You Need to Know About Mass Terminations

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