Shopify Layoffs 2026: News, Restructuring & Severance Rights in Canada

Shopify reportedly restructured in April 2026 — affecting more than 30 employees across various teams, including operations and customer support. (The Logic)

In a blog post, an impacted worker claimed that they were told “technological advancements” were a factor in the latest round of job cuts at the Canadian e-commerce giant.

The update comes after the company 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:

April 2026

• Cut more than 30 jobs across various teams, including operations and customer support.

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

Your Rights as a Non-Unionized Employee

Whether your departure is labelled a “layoff,” “restructuring,” or a “voluntary package,” your legal rights are governed by Canadian common law.

How Severance Pay Works

For non-unionized staff and managers at Shopify, severance pay isn’t determined by a single internal policy.

Instead, it’s based on the unique circumstances of your situation:

• The 24-Month rule: Depending on your age, length of service, and the nature of your role, you may be entitled to up to 24 months of severance pay.
• Managerial complexity: For managers, severance must often account for bonuses, RSUs, and stock options.
• Provincially regulated status: Because Shopify is a provincially regulated employer, specific rules under a province’s employment legislation apply alongside common law standards.

Defining Wrongful Dismissal

A “wrongful dismissal” is a specific legal term. It occurs whenever an employer in Canada terminates a non-unionized worker without “just cause” but fails to provide the proper amount of severance pay.

This isn’t a reflection of the company’s intent, but rather a calculation of whether the package meets the high standards set by Canadian courts.

If an employment contract’s termination clause is unenforceable, or if a “temporary layoff” is implemented without a prior written agreement, an employee may have a claim for full severance.

Recommended Steps for Affected Shopify Staff

If you’ve been notified of job loss or offered a “voluntary departure” package at Shopify:

1. Don’t sign anything immediately: You’re legally entitled to a reasonable period to review any offer. Signing a release prematurely can waive your right to pursue full compensation.
2. Use the Severance Pay Calculator: Get an anonymous, instant estimate of your entitlements.
3. Check your compensation: Ensure your offer includes all variable pay, including bonuses and benefits.
4. Seek legal advice: An experienced employment lawyer can ensure that you receive fair compensation.

Shopify Layoffs: Frequently Asked Questions

Are layoffs at Shopify permanent?

For non-unionized employees, a layoff is typically treated as a permanent termination of employment requiring full severance.

Can a manager at Shopify negotiate a better deal?

Yes. Initial offers from large employers often focus on minimum standards rather than full common law entitlements.

Does Shopify have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Lost Your Job at Shopify? Get Help Now

Samfiru Tumarkin LLP has helped over 60,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 5-star reviews across the country.

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.