Shopify Inc. SHOP 1.90%▲ is cutting roughly 1,000 workers, or 10% of its global workforce, rolling back a bet on e-commerce growth the technology company made during the pandemic, according to recently shared internal memo.
Leaving many people wondering why?
According to the Wallstreeet Journal reported today, Shopify CEO Tobi Lütke says company made wrong bet on pandemic-fueled boom in e-commerce growth.
The main reason for the layoffs was rapid hiring to accommodate increased ecommerce shopping trends.
Basically, Shopify was betting on that the rapid Covid-era lock downs would increase in ecommerce shopping would continue as a trend, hastening a greater adoption of online shopping.
That didn’t happen…At least not for Shopify.
What is Shopify?
Based in Ottawa, Canada, Shopify is an e-commerce service that allows merchants to quickly build and customize websites for selling products online. In addition to plan fees, Shopify makes its money in part by taking a percentage of customer transactions. In short, they are a platform that enables users to create drop shipping sites.
