Shopify cutting 10% of workers, misjudged e-commerce growth

After scaling up its workforce to meet the demand it projected during the COVID-19 pandemic, Ottawa-based Shopify is laying off 10 per cent of its staff.

In a letter to employees that was made public on July 26, CEO Tobi Lütke said that the Canadian e-commerce giant made a bet that the global retail transition to e-commerce, which picked up during the pandemic, would continue to accelerate. “It’s now clear that bet didn’t pay off,” he said.

In a blog post, Lütke added that most of the staff impacted work in recruiting, support, and sales. Shopify also plans to remove “over-specialized and duplicate” roles as well as groups that it believes are convenient to have, but are too far removed from building products.

This was a very hard decision and a very hard message to write. Shopify is full of remarkable people. Today we have to say farewell to some of them. If you are hiring, contact placement@shopify.com and we will provide you with contact information

— tobi lutke (@tobi) July 26, 2022

Once the country’s most valuable company, Shopify’s website claims that it employs more than 10,000 people around the world.

READ MORE
• Report: Shopify cuts 70 more workers, boosts pay for remaining staff
• Shopify lays off staff in switch to remote work

How does this impact Canadian employees?

If you’ve been laid off or are facing termination, here’s what you should know:

• You Are Likely Owed Severance: Employees at Shopify are entitled to full severance pay under Canadian employment law.
• What Severance Includes: Severance packages can cover salary, bonuses, commissions, benefits, and more.
• Rights Don’t Change: Even in times of corporate restructuring, your rights as an employee remain protected.

For a detailed overview of Shopify’s layoff history and severance entitlements, visit our Shopify Layoffs: Severance Pay for Employees guide.

Key severance facts for Shopify employees

If you’ve lost your job due to the closure, here’s what you need to know about severance in Canada:

• Severance Pay: Can be up to 24 months’ pay, depending on your role, age, length of service, and ability to find similar work.
• Deadlines: You have up to two years from your termination date to pursue a claim for severance.
• Misclassified Employees: Contractors may also be eligible for severance if misclassified as independent contractors.

Use our Severance Pay Calculator to estimate what you’re owed.

Steps to take if you’ve been laid off

1. Don’t Sign Anything Yet: Before accepting any severance offer, have it reviewed by an employment lawyer to ensure it’s fair.
2. Understand Your Rights: Learn about severance pay and employment standards through our Shopify Layoffs Guide.
3. Contact Us for Help: Book a consultation with our team for a detailed review of your severance package and employment contract.

Talk to an employment lawyer

If you’ve been affected by layoffs at Shopify, it’s critical to understand your rights and secure the compensation you’re owed. Contact us today for expert legal advice and a free consultation.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals. In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

Call 1-855-821-5900 or complete a quick form to get started.