E-commerce app Shopify is going to lay off about ten percent of its employees. Now that the lockdown is over, fewer people would order online.
The company has to cut its staff to cut costs, CEO Tobi Lütke writes in a statement on the company’s website. That layoff would affect some 1,000 people or 10 percent of Shopify’s employees, The Wall Street Journal reports. This mainly concerns people in HR, customer service, and sales.
Shopify builds infrastructure and tools for online merchants. The Canadian company has seen strong growth in recent years due to all kinds of lockdowns as more people shop online. Shopify assumed that the e-commerce trend would continue after the pandemic. That turns out to be a bad gamble, Lütke writes in his announcement, which means that many people now have to leave.
The current combination of a looming recession and a return to offline life is forcing many tech companies to freeze or layoffs. Netflix and Microsoft, among others, are cutting their staff, while Facebook is temporarily not hiring new employees.