Financial Tips
Advertisement
  • Home
  • News
  • Investment
  • Digital Payment
  • Banking
  • Contact us
No Result
View All Result
  • Home
  • News
  • Investment
  • Digital Payment
  • Banking
  • Contact us
No Result
View All Result
Financial Tips
No Result
View All Result
Home Banking

Shopify will cut 10% of its staff, with most workers gone by day’s end

admin by admin
July 26, 2022
in Banking


Canadian e-commerce firm Shopify Inc. will cut about 10% of its workforce Tuesday, as Chief Executive Officer Tobi Lutke acknowledged the company’s decision to expand rapidly coming out of the Covid-19 pandemic didn’t pay off.

The move will eliminate about 1,000 jobs out of 10,000 or so total employees at Shopify. Most of the affected roles are in recruiting, support and sales, Lutke said in a memo posted on the company’s website.

Shopify tumbled as much as 17% to $30.55, the biggest intraday drop in almost three months. The Wall Street Journal reported the job cuts earlier Tuesday.

“We bet that the channel mix — the share of dollars that travel through e-commerce rather than physical retail — would permanently leap ahead by five or even 10 years” because of the pandemic, Lutke wrote.

“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.”

Shopify was among the hottest pandemic stocks in 2020 and 2021 as online shopping boomed. It came crashing down this year, hampered by an economic cool-down and an easing of Covid-19 restrictions. Shopify shares have fallen 73% this year as of Monday’s close.

The Ottawa-based company reported a huge profit miss in the first quarter, and analysts have cut their expectations for the second quarter results, which are scheduled for Wednesday.

The move boosts the likelihood that Shopify will lower its full-year outlook, according to RBC Capital Markets analyst Paul Treiber. During first-quarter results in May, the company said it had expected merchants to join its platform at the same rate as in 2021.

“Since Shopify reinvests all the gross profit that it generates back into the business, the reduction of headcount increases the likelihood that the company reduces its FY22 outlook,” Treiber said in a note to clients.

Analysts expect $1.33 billion in revenue for the period ended June 30, up just 11% from the first quarter.

For those losing jobs this week, Shopify will pay at least 16 weeks of severance and extend additional benefits, including an allowance to buy laptops and temporary coverage of home internet costs, a spokeswoman for the company said.

–By Derek Decloet, Prarthana Prakash and Stefanie Marotta (Bloomberg)





Source link

Tags: bloombergpaymentsshopify
Previous Post

Eight Alums Raised More Than $984 Million in Q2 2022

Next Post

Does Guru Investing Work? | CFA Institute Enterprising Investor

Next Post

Does Guru Investing Work? | CFA Institute Enterprising Investor

Recommended

2022 US Wealth Management Outlook: All Aboard the Crypto Train?

July 22, 2022

Bridging the Fundamental–Quant Divide | CFA Institute Enterprising Investor

July 22, 2022

Don't miss it

Banking

Teslar Software to Streamline and Automate Lending for Missouri-Based The Seymour Bank

August 18, 2022
Digital Payment

Another Stablecoin Fluctuates Wildly as HUSD Slips Below USD Peg to $0.82 per Token – Bitcoin News

August 18, 2022
Banking

FinovateFall 2022 Sneak Peek: Instnt

August 18, 2022
Digital Payment

Security PSA: Sha Zhu Pan (Pig Butchering) Investment Scams | by Coinbase | Aug, 2022

August 18, 2022
News

Nigeria aims for millions of new eNaira users as it increases features, targets unbanked

August 18, 2022
Investment

Why Are There So Many Cryptocurrencies?

August 18, 2022

© 2022 Financial Tips News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy.

Navigate Site

  • Home
  • News
  • Investment
  • Digital Payment
  • Banking
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • News
  • Investment
  • Digital Payment
  • Banking
  • Contact us

© 2022 Financial Tips News Hubb All rights reserved.