Shopify, an online marketplace, has fired about 10% of its CEO, 10,000 employees. publication Citing the stagnation of growth in the e-commerce sector on Tuesday.
Shopify CEO Tobias Lütke not only impacts recruitment, support, and sales teams, but also notes “overlapping roles” to employees and is effective by the end of the day. Helping merchants start a business selling products online or in retail space, the company offers dismissed people benefits such as 16-week severance, extended health insurance, career coaching services, and a free Shopify account. He said he was doing it.
Shopify is the latest company to fire employees in response to the upsurge in inflation and the potential recession that has changed consumer behavior. Last month, cryptocurrency exchange Coinbase announced that it would fire 18% of its employees, and electric car maker Tesla announced that it would cut 10% of salaried workers.
Shopify predicted that the coronavirus pandemic e-commerce boom would continue to move consumers to e-commerce platforms and leave physical stores. But growth wasn’t as strong as expected.
Shopify is set up to report revenue on Wednesday. After the announcement, the company’s share price had fallen nearly 15% by noon to $ 31.24 per share.
“In the end, making this bet was my call, and I made a mistake,” Lütke wrote in a memo. “Now we need to make adjustments. As a result, we have to say goodbye to some of you today. We deeply apologize for that.”
