While Amazon, the world’s leading online retailer, has weathered the tech downturn relatively well so far, that hasn’t necessarily been the case for its smaller rival Shopify. In late July, Shopify CEO Tobi Lütke Announce The company is laying off 10% of its workforce, or about 1,000 employees, after a period of explosive pandemic growth.
Shopify has benefited from a sudden shift to e-commerce, driven by Covid-19 lockdowns and changing shopping patterns. Like many companies, Shopify has gone on a hiring spree, hoping this level of e-commerce will outlast the pandemic. This isn’t exactly what Shopify intended.
“Ultimately, the bet was my decision, but I was wrong,” Lütke wrote. “Now, we have to adjust. So we have to say goodbye to some of you today, and I apologize for that.”