Shopify losses, job vacancies and a technical recession: The business and investing stories that you must find out about this week

The brand of Shopify hangs behind the Canadian flag after the corporate’s IPO on the Latest York Stock Exchange on May 21, 2015.Lucas Jackson/Reuters

Getting caught up on every week that got away? Here’s your weekly digest of the Globe’s most essential business and investing stories, with insights and evaluation from the professionals, stock suggestions, portfolio strategies and more.

Don’t panic, but a recession may ‘technically’” be coming

The U.S. economy unexpectedly shrank for the second quarter in a row, triggering signs of a technical recession, if not a full-blown one. As Jason Kirby writes, gross domestic product (GDP) fell at a 0.9-per-cent annualized rate, bringing the overall contraction of the U.S. economy in the primary half of 2022 to 1.3 per cent. While two consecutive quarters of shrinking economic output is commonly thought to be a casual sign of a recession, it’s not an official definition, and lots of economists suggest recession talk is premature due to record-low unemployment levels.

Shopify cuts, losses and mea culpa

Ottawa-based tech giant Shopify made headlines again this week after cutting 10 per cent of its staff, about 1,000 people globally, Temur Durrani writes. A lot of the jobs affected were in sales, accounting and recruiting, and this latest round of layoffs follows 50 jobs getting cut in early July. Chief executive officer Tobias Lutke apologized for overestimating the expansion of e-commerce, which led Shopify to rent too many individuals with a purpose to meet that expected demand, writing “I got this fallacious,” in a memo to 10,000 employees. A day later, Shopify posted an enormous second-quarter net lack of US$1.2-billion, and warned of more operating losses ahead because it confronts a slowdown in e-commerce. Earlier this month, Shopify announced it was delaying compensation overhauls for workers disgruntled with falling stock prices, and cancelling internships and job offers for individuals who were to start work in the autumn.

Retail rewind: the e-commerce boom is tapering off

Seems, we love going to the mall in spite of everything. As pandemic restrictions have lifted, many individuals are returning to old habits – trying on clothes, testing mattresses, browsing shelves – and because the Shopify layoffs seem to point out, ditching online shopping. As Matt Lundy writes, Canadians spent about $3.5-billion on e-commerce orders in May, down 23 per cent (or around $1-billion) from a yr earlier, when parts of the country were still in lockdown. It’s an analogous story within the U.S., but don’t call it a bust yet.

Must you stay (at your job) or must you go (for extra money)? It depends who you ask

For greater than a yr, Canada’s record labour shortage has meant big pay bumps for those willing to change jobs. But with a possible recession on the horizon and a few tech firms trimming their headcounts, some employees are beginning to ponder whether jumping ship to get extra money is a very good idea. As Erica Alini reports, the most recent Statistics Canada data shows employers were actively in search of to fill over 1,000,000 vacant positions initially of May, up 42.5 per cent from the identical month last yr. So while there are signs of a cooldown, employees who haven’t seen a pay raise in years and whose wages have fallen far below inflation and market rates are still prone to significantly boost their compensation by changing jobs without delay.

The offender of the Rogers outage: a coding error

Weeks after a widespread Rogers outage that interrupted wireless, cable and web services across the country, the telecommunications company has finally determined the cause. In documents disclosed publicly by the Canadian Radio-television and Telecommunications Commission, Rogers said that a coding error was introduced during an upgrade to the core infrastructure that supports the corporate’s wireless and broadband networks. As Alexandra Posadzki reports, the error triggered a cascade of events that even the corporate’s technicians had difficulty pinpointing, and took all day for the team to revive the network.

Stressed about your massive mortgage? Here’s what to do

We’re now in a period of mental adjustments on home ownership, starting with the concept that an enormous mortgage is a noble burden since you own an asset that rapidly gains value. Combined with higher living costs and rising debt payments, young homeowners are saddled with essentially the most money stress today – and falling home prices means there’s no moral victory for all this pain. So what should homeowners under pressure from rising mortgage costs do? Rob Carrick advises considering in increments of $100 when it comes to the financial steps you’re taking to lower your expenses. “We’re way beyond lattes here,” he writes. Storm clouds are brewing over Canada’s real estate market – and things are prone to worsen for borrowers.

Now that you just’re all caught up, prepare for the week ahead with the Globe’s investing calendar.

Your time is priceless. Have the Top Business Headlines newsletter conveniently delivered to your inbox within the morning or evening. Join today.

Leave a Reply

Your email address will not be published. Required fields are marked *