Shopify to discharge ten percent of its employees
Recent reports stated that Shopify is discharging 10 percent of its employees. This amounts to about 1000 of the organization’s employees. Shopify recently posted a memo in their official website where they announced they will undergo reduction in workforce. Employees engaged in the recruiting, support and sales department will mostly be affected by this.
The company is also taking steps to remove over-specialized and duplicate roles. They will also remove groups that weren’t necessarily contributing to product building. The CEO of the company, Tobi Lutke attributed the layoff to a miscalculated bet that the e-commerce industry will continue to grow even after the COVID-19 pandemic.
The company will give severance pay of 16 weeks to the impacted employees. They will also receive severance pay for one added week for every year the employee was part of the company. Shopify will also offer career coaching opportunities to the affected employees so that they can get a new job. Additionally the employees will also have to return the company laptop. The company will offer a “kickstart allowance” as a replacement to the company laptop.
The post pandemic economy has affected many companies who consequently cut down jobs due to the fallout. Shopify is one such company among many others.