Consumers call Shopify’s online retail bet

STORY: Canada’s Shopify is laying off 10% of its workforce as it struggles with slowing growth

Source: Regulatory filings

The company had 10,000 employees as of Dec. 31, up from 7,000 at the end of 2020

Shopify’s shares have lost 75% of their value so far in 2022

Sales growth during the health crisis led the company to ramp up hiring and invest in technology

The company bet the shift to online retail would not subside

Quote from Tobi Lutke, Shopify CEO:

“It’s now clear that bet didn’t pay off. What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point... Ultimately, placing this bet was my call to make and I got this wrong.”

Shopify is facing competition from Amazon and brick-and-mortar stores

It’s now tying up with social media firms like Twitter and YouTube as influencers start to sell their own brands

The company is seeing meaningful traction in this area, according to an analyst