Shopify's revenue growth has decelerated for five straight quarters as the coronavirus pandemic fades and online shopping normalizes.
In a blog, Chief Executive Tobi Lütke took responsibility for over-estimating Shopify's growth.
"We bet that the channel mix — the share of dollars that travel through ecommerce rather than physical retail — would permanently leap ahead by 5 or even 10 years," Lutke wrote. "We couldn't know for sure at the time, but we knew that if there was a chance that this was true, we would have to expand the company to match."
Shopify sets up e-commerce websites for businesses and partners with others to handle digital payments and shipping.
Most merchant customers of Shopify target the consumer market. However, Shopify plans a move into business-to-business commerce.
The majority of layoffs will occur in the recruiting, support and sales units, he said.
In a blog, Chief Executive Tobi Lütke took responsibility for over-estimating Shopify's growth.
"We bet that the channel mix — the share of dollars that travel through ecommerce rather than physical retail — would permanently leap ahead by 5 or even 10 years," Lutke wrote. "We couldn't know for sure at the time, but we knew that if there was a chance that this was true, we would have to expand the company to match."
Shopify sets up e-commerce websites for businesses and partners with others to handle digital payments and shipping.
Most merchant customers of Shopify target the consumer market. However, Shopify plans a move into business-to-business commerce.
The majority of layoffs will occur in the recruiting, support and sales units, he said.
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