RetailCA

Shopify Layoffs

May 2023

Shopify announced a layoff affecting 2,300 employees (20% of its workforce) in May 2023. The company operates in the Retail sector.

Share:
People Affected

2,300

Percentage

20%

Announced Date

May 4, 2023

Company Information

Industry
Retail
Country
CA
Region
Ottawa, Non-U.S.
Last Updated: Apr 18, 2026

About

On May 4, 2023, Shopify, an Ottawa-based e-commerce platform, announced it would lay off 20% of its workforce, affecting over 2,300 employees out of approximately 11,600 total staff. This marks the company's second major round of layoffs in under a year. The cuts are part of a strategic shift to streamline operations, including the sale of its entire logistics division to Flexport in exchange for a 13% stake. CEO Tobi Lütke cited an unhealthy ratio of managers to "crafters" as a key factor, with managerial roles being disproportionately targeted. The move, aimed at long-term cost reduction, will incur significant severance and impairment charges but was followed by a stock price increase as investors reacted to the restructuring.

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