Shopify to Lay Off Workers Despite Billion-Dollar Revenue
Shopify is laying off 20% of its staff due to the sale of its logistics business to Flexport, which gives them 17% of Flexport's stock and the right to name a director.
Friday, Jun 2, 2023
Retail Dive reports that Shopify’s revenue is up 25% from last year to $1.5 billion for the first quarter of 2023, including $717 million in profit. But like many other large companies reporting record profits, Shopify is laying off 20% of its staff.
The layoffs come after the announcement that Shopify will be selling most of its logistics business to a company called Flexport. The deal gives Shopify 17% of Flexport’s stock as well as the right to name a director to Flexport’s board.
The laid-off employees will receive at least 16 weeks of severance pay. They will retain their medical and other benefits, as well. Shopify expects growth to continue through 2023, even with severance-related expenses. For more analysis and links to related stories, read the full article here.
