While the world’s largest online retailer, Amazon, has managed to weather the technical downturn relatively well so far, the same can’t necessarily be said of its smaller competitor, Shopify. End of July, Shopify CEO Tobi Lütke announced the company would lay off 10% of its workforce, about 1,000 employees, after a period of explosive pandemic growth.
Shopify benefited greatly from a sudden shift to e-commerce, driven by covid lockdowns and changing shopping patterns. Like many businesses, Shopify started looking for staff, expecting that level of ecommerce to survive the pandemic. That doesn’t go exactly as Shopify expected.
“In the end it was my decision to place this bet and I was wrong,” wrote Lütke. “Now we have to adapt. As a result, we have to say goodbye to some of you today and I am very sorry for that.”