Shopify stock tanks amid planned layoffs and slowing e-commerce growth

Published: July 26, 2022 at 9:17 a.m. ET

Shopify Inc. is planning to put off around 10% of its workforce because it admits that e-commerce growth hasn’t continued as robustly as expected. The Wall Street Journal first reported the news Tuesday, citing a memo to staffers. Shopify confirmed the small print in a blog post. The layoffs are expected across the corporate but are expected to especially hit the recruiting, support, and sales teams. The corporate plans to notify employees of the choices Tuesday. Chief Executive Tobi Lütke took responsibility for overly optimistic e-commerce projections in his memo to the staff. Shares of Shopify were off greater than 12% in premarket…

Shopify Inc.

SHOP

is planning to put off around 10% of its workforce because it admits that e-commerce growth hasn’t continued as robustly as expected. The Wall Street Journal first reported the news Tuesday, citing a memo to staffers. Shopify confirmed the small print in a blog post. The layoffs are expected across the corporate but are expected to especially hit the recruiting, support, and sales teams. The corporate plans to notify employees of the choices Tuesday. Chief Executive Tobi Lütke took responsibility for overly optimistic e-commerce projections in his memo to the staff. Shares of Shopify were off greater than 12% in premarket trading Tuesday. The corporate, which is as a consequence of report second-quarter results before Wednesday’s opening bell, has seen its stock sink 73% up to now this 12 months because the S&P 500

SPX

has declined 17%.

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