Shopify (NYSE:SHOP) layoffs are on the way as the e-commerce company reveals details about its latest job cut plans.
The Shopify layoff news has the company planning to reduce its workforce by 20%. The company made this announcement alongside its latest earnings report, which saw it beat out estimates for the first-quarter.
The Shopify layoffs come after the e-commerce company underwent massive growth during the Covid-19 pandemic. Shopify expanded its business to meet the increased demand it was seeing from customers during lockdowns.
However, growth isn’t as strong now that lockdowns have ended. This already saw the company cut its headcount by 10% in July 2022. Now, Shopify is looking to reduce its number of employees again with these latest layoffs.
Shopify Logistics Sale
While not layoffs, Shopify has revealed that it will also reduce its headcount via a business sale. The company is selling off its logistics business to Flexport. That includes the company’s logistics employees. Shopify will receive a 13% stake in Flexport as part of this agreement.
Today’s news has investors excited as SHOP stock sees an increase in trading volume. This has more than 22 million shares on the move as of this writing. To put that in perspective, the company’s daily average trading volume is closer to 16 million shares.
SHOP stock is up 26.9% as of Thursday morning.
Investors looking for more of the latest stock market news will want to stick around!
We’ve got all of the hottest stock market news worth reading about on Thursday! A few examples include a new listing for Bed Bath & Beyond (OTCMKTS:BBBYQ) stock, as well as what’s moving First Horizon (NYSE:FHN) and PacWest Bank (NASDAQ:PACW) shares today. You can catch up on all of this news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.