Canada’s Shopify Inc (SHOP.TO) is laying off 10 per cent of its workforce, the e-commerce company said on Tuesday, as it struggles with sales growth due to a post-pandemic slowdown in online shopping.
US-listed shares fell 11 per cent to $32.61 before the bell, after the company said it witnessed a pullback in online orders.
The company had placed its bets on a pandemic-driven boom in online shopping. “It’s now clear that bet didn’t pay off,” Chief Executive Officer Tobi Lütke said.
“Ultimately, placing this bet was my call to make and I got this wrong.” He added that the roles being affected are in recruiting, sales and support.
The company has tied up with social media firms Twitter (TWTR.N) and YouTube, as influencers who grew popular online are starting to sell their own brands to offset slowing sales.