Shopify to lay off 10% of workers in broad shake-up (wsj.com)

Article summary

Shopify is laying off 10% of its workforce, approximately 1000 people, due to a forecasted decline in revenue as people return to pre-pandemic shopping habits. The layoffs will occur across all divisions, with most cuts in recruiting, support, and sales units. The company is also eliminating over-specialized and duplicate roles. This move comes after a period of rapid growth, with Shopify's workforce increasing from 1,900 in 2016 to roughly 10,000 in 2021.

Main themes

• tech industry layoffs
• economic downturn
• company growth and scaling
• industry safety and stability
• hiring and recruitment
• financial management and burn rate

What commenters say

• Some industries, such as defense, pharma, and banking, are considered safer than others in the current economic climate.
• The safest companies are those that understand the basics of burn rate and do not rely on VC money to show fake growth.
• Layoffs are not limited to engineering, but rather affect various divisions, including recruiting, support, and sales.
• Hiring freezes and rescinded offers are also affecting the tech industry, with some companies experiencing a slowdown in growth.
• The fintech industry may be particularly vulnerable to economic downturns due to its reliance on subsidized VC funding.
• Some argue that legacy finance and established companies are more stable than startups and newer companies.
• The concept of safety in tech is relative and depends on individual companies rather than industries.
• Companies that have grown rapidly during the pandemic may need to reassess their workforce and operations to adapt to changing market conditions.