Shopify (NYSE:SHOP) stated in an internal message that it planned to reduce 1,000 positions, or 10% of its worldwide staff, across all of its businesses as it scales down on e-commerce growth estimates it had seen during the epidemic. This memo was cited by the Wall Street Journal. Most layoffs will be in the sales, support, and recruiting departments. In addition, according to creator and CEO Tobi Lütke, “We’re eliminating over-specialized and redundant roles, as well as other groups that were handy to have but too far removed from producing goods.”

The company now anticipates that sales growth will slow this year as consumers have returned to their old buying patterns and online orders have decreased as a result, hindering the company’s growth. The company has lost 59% in value over the last six months of trade, and 22 of the 46 Wall Street analysts that cover the stock give it a Hold recommendation, while 19 have given it a Strong Buy rating, bringing the average rating for the stock to “Buy.” Q2 earnings are expected for July 27, 2022.

Quant Rating was at Strong Sell in February 2022 when the stock was at $62.62 and has remained there ever since. The job cuts are among the biggest so far in a wave of layoffs and recruiting freezes among technology companies, and they are the first significant layoffs the company has disclosed since Mr. Lütke founded the company in 2006. The flourishing business drove a five-fold increase in Shopify’s employees from 1.9K to 10K in 2021. It also experienced yearly revenue growth of 86% in 2020 and 57% in 2021. However, the company’s most recent Q1 2022 earnings suggested a downturn. The corporation is giving the laid-off employees 16 weeks of severance pay plus one week for each year of service.

About Shopify (NYSE:SHOP)

Shopify (NYSE:SHOP) own e-commerce platform for online storefronts and retail point-of-sale systems is known as Shopify (NYSE:SHOP). Online shops can access a variety of services via the Shopify (NYSE:SHOP) platform, including facilities for payments, marketing, shipping, and customer interaction. As of May 2021, the company said that more than 1,700,000 enterprises in over 175 countries were utilizing its platform. As of 2021, 1.58 million websites are powered by the Shopify (NYSE:SHOP) platform, according to BuiltWith. (NYSE:SHOP For the calendar year 2019, the overall gross merchandise volume topped US$61 billion. Shopify (NYSE:SHOP) is one of the top 20 most valuable publicly traded Canadian firms as of July 2022. 

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