The CEO of Canadian online shopping platform Shopify sent a memo to staff today saying that one in 10 of them would be done working there and gone by day’s end. Tobi Lutke issued the note with a heartfelt apology that his belief that post-COVID e-commerce rates would continue to soar did not materialize.
“It’s now clear that bet didn’t pay off,” he admits in the memo. “What we see now is the mix reverting to roughly where pre-COVID data would have suggested it should be at this point.”
With a high share of market in e-commerce, Shopify found itself vulnerable to this correction. “Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.”
The company is offering offer outplacement services, including career coaching, interviewing support, and resumé writing.
