Shopify announces 20% cut to global workforce

Canadian e-commerce company Shopify is to lay off 20% of its global workforce.

It is not yet known how many Irish-based jobs will be impacted.

However, a Shopify spokesperson said that the cuts will be implemented broadly across the company.

Shopify had 11,600 employees and contractors at the end of last year but the company has not provided a breakdown of how many staff are based in Ireland.

The company had aggressively built out an order-fulfilment network in recent years on expectations that a pandemic-fuelled demand boom would last, mirroring similar moves by rivals.

But that bet unravelled last year, sharpening investor scrutiny of the capital-intensive project that could weigh on earnings and forcing the company to cut 10% of its workforce in July.

Shopify has also announced that it is offloading its logistics arm to freight forwarder Flexport in an all-stock deal.

“They can have the best of both worlds – a logistics business that makes them competitive with Amazon without having to manage a business that is not core to Shopify and had been losing money,” said Gil Luria, analyst at DA Davidson & Co.

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