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Shopify CEO Says 'I Was Wrong' - Now We Have To Lay Off 1000 Employees
The company has announced that Shopify has laid off 10% of its staff.
The move will affect around 1,000 of its employees, according to
a report through The Wall Street Journal.
In a memo published on Shopify's site, the CEO Tobi Lutke explains that the business "has to undergo the process of reducing its workforce,"
which mainly affects employees employed in recruitment, support a
Lutke states that the online firm is also cutting back the number
of "over-specialized" and redundant roles, as well as "groups that were useful to have but were too away from creating products."
Lutke blames the layoffs on an uninformed assumption that the e-c
ommerce market would continue to expand beyond the COVID-19 pandemic.
As reported by the WSJ, WSJ reported that Shopify's staff would g
row between 1,900 and 10,000 by 2021 to accommodate the anticipated growth.
However, Lutke states that the situation is "reverting to the sam
e level as before Covid data suggested."
"Ultimately, the decision to place the bet I did was my choice to
make, and I did this wrong," Lutke writes.
In the process, we must end our relationship with some of you, an
d I'm so sorry.
Lutke says that employees affected will be paid sixteen weeks' worth o
f severance compensation plus an additional week for each year that the employee worked for the company.
In addition, Shopify will offer guidance for employees affected to find a new jobs.
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