Shopify stock sinks 14% after company says it will lay off 10% of workers

    Shopify stock sinks 14% after company says it will lay off 10% of workers

    Shopify is laying off roughly 1,000 workers, or around 10% of its global workforce, the company announced Tuesday.

    Shares of Shopify closed down 14%.

    In a memo to staff, CEO Tobi Lutke acknowledged he had misjudged how long the pandemic-driven e-commerce boom would last, and amid a broader pullback in online spending, Shopify would move to cut a number of roles.

    Shopify had more than 10,000 employees as Dec. 31, 2021, according to a securities filing.

    The cuts will affect all of Shopify’s divisions, though most will occur in recruiting, support and sales, and “across the company” it is eliminating “over-specialized and duplicate roles, as well as some groups that were convenient to have but too far removed from building products,” Lutke said in the memo.

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