At the end of last year and this year, a large number of technology companies announced mass layoffs. It is impossible to list all of them at once, but the most well-known are among them. The next to join this list is e-commerce company Shopify, which plans to lay off 20% or 2,000 employees, as well as sell most of its logistics business.
The CEO of Shopify, Tobi Lütke, shared the announcement of the layoffs at the very beginning of May. He also announced that, in addition, the company will sell most of its logistics business to supply chain technology company Flexport. Lütke also admitted that this decision could have a “devastating effect” on some employees, and emphasized that it was not easy to accept, but it was the right path for Shopify. True, it has not yet been revealed which department’s employees will be most affected by the layoff.
As for Shopify’s logistics business, the company has decided to sell the logistics startup Deliverr, which it bought last year for more than two billion dollars. For part of the amount, Shopify plans to buy a 13% stake in Flexport and announced that it will become the company’s official logistics partner. In addition to that, Shopify also plans to sell the warehouse automation and robotics company River Systems, which it bought in 2019 for $450 million.
Looking at the stock value curve, Shopify’s heyday, like many other e-commerce companies, was during the pandemic years. As restrictions eased and in-person shopping became the norm again, Shopify’s stock price reacted sharply.
2023-05-06 09:00:00
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