Shopify to lay off 20% of staff

Ottawa-based Shopify Inc. said on Thursday it would cut 20 per cent of its workforce, the second major round of layoffs at the e-commerce company in the past year. 

“This means some of you will leave Shopify today,” CEO Tobi Lutke told staff in a memo. “I recognize the crushing impact this decision has on some of you, and did not make this decision lightly.”

Affected employees have already been advised, via email, if they still have a job. Everyone will receive a minimum of 16 weeks severance plus a week for every year they worked at the company. 

Part of the cuts come from Shopify’s sale of its logistics division to Flexport, based in Silicon Valley, Calif.

The company announced the layoffs as it revealed quarterly results, which beat expectations. The company’s shares were up by eight per cent in pre-market trading.

More to come