Shopify\u0027s shares fell after the company confirmed 1,000 employees will be laid off. Find out more.
, Lütke said the cuts primarily affect people in recruiting, support and sales. All those affected will leave by the end of the day, he said.
The company saw a surge in e-commerce growth as COVID-19 lockdowns forced people to shop online, pushing the company to invest to keep up pace. Executives expected the surge to be permanent, but growth has since fallen back to pre-COVID levels, Lütke said. “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,” Lütke said in the posting.
Shopify tumbled about 14 per cent to US$31.60 in premarket trading as of 9:19 a.m. New York time. Shares are down 73 per cent this year, as of Monday’s close. The company will report its second quarter earnings on Wednesday. Analysts have cut their expectations for the results.
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