Though the world’s leading online retailer, Amazon, has so far managed to weather the tech downturn relatively well, the same can’t necessarily be said for its smaller competitor, Shopify. In late July, Shopify CEO Tobi Lütke announced the company would lay off 10% of its staff, roughly 1,000 workers, following a period of explosive pandemic growth.
Shopify benefited immensely from a sudden shift towards ecommercce propelled by covid lockdowns and evolving shopping patterns. Like many companies, Shopify went on a hiring spree, expecting that level of ecommerce to outlive the pandemic. That’s not exactly playing out the way Shopify expected.
“Ultimately, placing this bet was my call to make and I got this wrong,” Lütke wrote. “Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.”