Observed Signal · Jul 26, 2022 · Layoffs · Source: Trending Topics · Impact: 2/5 · Sentiment: Negative
Shopify Cuts 1,000 Jobs, Shares Plunge 15%
On July 26, 2022, Canadian e-commerce company Shopify announced it would cut about 1,000 jobs, approximately 10 percent of its workforce. CEO Tobias Lütke said he was wrong in betting that e-commerce would take a permanent five-year leap forward after the COVID-19 pandemic. He cited high inflation, the war in Ukraine, and Europe's energy crisis as factors weakening consumer purchasing power. Lütke stated Shopify was still growing steadily, but not at the accelerated pace expected. After the announcement, Shopify's share price dropped by about 15 percent. The move is part of a wider wave of technology sector layoffs in 2022, with more than 57,000 tech jobs cut, according to layoffs.fyi. Other companies that reduced staff include Coinbase, Bitpanda, Crypto.com, and Klarna.
A major e-commerce platform is cutting 10% of staff and its stock fell sharply, signaling a demand slowdown in online commerce that can affect e-commerce advertising budgets.
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Key Takeaways & Evidence Grounding
- Shopify announced it is cutting approximately 1,000 jobs, around 10 percent of its workforce.
- CEO Tobias Lütke admitted his bet on a sustained post-COVID e-commerce boom was wrong.
- Shopify's share price fell by about 15 percent after the job cut announcement.
- The layoffs are part of a broader tech sector wave, with more than 57,000 tech jobs cut in 2022, according to layoffs.fyi.
- Coinbase, Bitpanda, Crypto.com, and Klarna also reduced staff in 2022.
Connected Companies & Entities
5 Entities mapped“Tobias Lütke, CEO of Shopify, had to communicate that the e-commerce provider is cutting around ten percent of its positions....”
“Shopify is only one of many tech companies that have to make cuts – also at Coinbase, Bitpanda, Crypto.com, Klarna many positions were cut....”
“Shopify is only one of many tech companies that have to make cuts – also at Coinbase, Bitpanda, Crypto.com, Klarna many positions were cut....”
“Shopify is only one of many tech companies that have to make cuts – also at Coinbase, Bitpanda, Crypto.com, Klarna many positions were cut....”
“Shopify is only one of many tech companies that have to make cuts – also at Coinbase, Bitpanda, Crypto.com, Klarna many positions were cut....”
Ontology Mapping & Concepts
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