Shopify's stock drops 15% as the business announces a 10% employee reduction.

          Shopify               Ecommerce             Workforce 

Shopify's CEO Tobi Lutke informed colleagues in a memo on Tuesday that the company intends to reduce its global workforce by about 10%.
Shares of Shopify fell by more than 16 percent.

One of the biggest winners from the pandemic-driven e-commerce boom was the Canadian startup, which creates tools for businesses to sell things online.

The Canadian company's head office in Ottawa, Ontario, a worker is employed.Reuters, Chris Wattie
Around 1,000 employees, or around 10% of Shopify's global staff, will be let go, the business announced

As a result of the news, Shopify's shares fell more than 16%.CEO Tobi Lutke stated in a note to colleagues that he had underestimated the duration of the pandemic-driven e-commerce boom and that

Shopify will be cutting a number of positions in light of a general decline in online expenditure.According to a securities filing, Shopify employed over 10,000 workers as of the fiscal year that 

ended on December 31, 2021.
In the context of economic instability and a slowing of epidemic trends, technology companies have been reporting layoffs,

hiring freezes, and the cancellation of job offers.Both Facebook owner Meta and Google parent Alphabet announced earlier this month that they would delay the hiring process.

Companies like Netflix and Coinbase have made layoff announcements.
One of the biggest winners from the pandemic-driven e-commerce boom was the Canadian startup,

which creates tools for businesses to sell things online.Shopify and other e-commerce companies started to face worries that they wouldn't be able to sustain the rapid growth

they had experienced once stores reopened and customers resumed their pre-pandemic shopping patterns.The bet on Shopify didn't pay off, according to Lutke.

"What we now observe is an approximately reversion of the mix to where pre-Covid statistics would have suggested it should be at this stage.

Still expanding steadily, however, there wasn't a significant 5-year advancement.Shopify anticipated that sales growth would be slower in the first half of the year as it dealt

with challenging comparisons to the epidemic era. On Wednesday, the corporation is expected to release second-quarter profits.

According to Shopify, employees who are let go will receive 16 weeks of severance compensation in addition to one week for each year of employment.