Shopify cuts 20pc of its staff to become more ‘fit for purpose’

4 May 2023

Image: © JHVEPhoto/

The company is cutting staff numbers to refocus on its ‘main quest’ and is selling its logistics business to Flexport.

E-commerce giant Shopify plans to cut 20pc of its global workforce as it prepares for a decade of “high velocity and massive change”.

In a statement, CEO Tobias Lütke said the company is changing its shape to pay “unshared attention to our mission”. He said Shopify plans to focus on its “main quest” of making commerce easier and is moving away from its “side quest” objectives.

As part of this focus change, Shopify is also selling its logistics business to supply chain management company Flexport.

“Making the global supply chains efficient and software addressable is Flexport’s main quest and so this is the perfect home for this part of Shopify,” Lütke said.

“A more fit for purpose Shopify centered on its main quest has less scope creep, fewer meetings and more shipping great features for our merchants.”

In terms of job losses, it is unclear which departments will be impacted outside of the Logistics business. The company employed roughly 10,000 people globally by the end of 2021, CNBC reports.

Last year, Shopify joined other tech companies in staff reductions when it cut 10pc of its workforce.

It is also unclear how many Irish workers will be impacted by the latest wave of job cuts. In 2021, Ireland represented Shopify’s largest base outside of its native Canada.

When asked about Irish job cuts, a Shopify spokesperson told that the staff cuts have been implemented “broadly across the company”.

Those leaving Shopify today have been promised a minimum of 16 weeks severance, with an extra week for every year at the company.  The company is also offering medical benefits, outplacement services and any provided office furniture.

“This is a consequential and hard week,” Lütke said. “It’s the right thing for Shopify but it negatively affects many team members who we admire and love working with.

“My belief is that any enduring company makes a habit of doing the right thing, even if easy outs present themselves.”

Shopify saw demand for its e-commerce platform skyrocket during the Covid-19 pandemic. In February 2021, the company reported a 94pc year-on-year increase in quarterly revenue.

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Leigh Mc Gowran is a journalist with Silicon Republic