Shopify faces class action over severance offered to recently laid off staff
A class-action lawsuit alleges Shopify Inc. reneged on a deal it offered some employees who were laid off in a recent round of cuts.
“The individuals did the reasonable thing, which is to accept, only to be told even though we made you reasonable offers, even though you accepted that reasonable offer, we’re just not going to do it and you have to sign a brand new agreement for a much lesser amount,” said Lior Samfiru, a lawyer pursuing the case.
When their severance offers were revised, Samfiru said workers were sent a “vague statement about miscalculating.”“We’ve seen anywhere from a $10,000 to $50,000 and $60,000 difference between what individuals accepted and what Shopify now says they’re not going to get. We are not talking about anything minor here.”
The company refused to give the number of staff that would be departing the company during the May cut, but it reported in a regulatory filing that it had 11,600 employees at the end of 2022. Twenty per cent of that amounts to about 2,300 people.
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