Although 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, after a period of explosive pandemic growth.
Shopify benefited enormously from a sudden shift to e-commerce, driven by Covid lockdowns and evolving shopping patterns. Like many companies, Shopify went on a hiring spree, expecting that level of e-commerce to survive the pandemic. This isn’t working exactly as Shopify expected.
“At the end of the day, placing this bet was my call to make and I was wrong,” Lütke wrote. “Now, we have to adapt. As a result, we have to say goodbye to some of you today, and I’m very sorry about that.”