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Shopify cuts down 10% of employees due to decrease in online shopping

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Many online sites saw a surge in sales at the onset of the pandemic even as physical stores suffered. The end of lockdown has reversed this turn of events. Canada’s Shopify Inc. is one such e-commerce platform that grew during COVID-19 and has seen a slowing growth after it ended. Its chief competitors are Amazon and brick-and-mortar stores that have started amassing business again after the lockdown. This has led the shares to tumble 14.7% in the US and 14% on Toronto Exchange. They have lost 70% of their value so far. Unfortunately, Shopify is forced to cut down 10% of its workforce in the aftermath. Previously, the rise in business during the pandemic led the company to estimate wrongly that the sales would keep growing. So, it had increased the number of employees from 7000 in 2020 to 10,000 in December. After disappointment on this front, the decision had to be reversed. Shopify has now also collaborated with social media platforms like Twitter and YouTube to promote its brand. Wednesday would reveal for investors whether this move has worked enough to lift it out of the slump.

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