Shopify, the Ottawa based commerce platform which rose to its highs boosted by the pandemic, had been making changes to its organization and has let go of 50 employees so far from April.
As reported by The Globe and Mail, the company had announced to the employees in early April that their compensation packages would be overhauled this summer – which will be giving the employees the flexibility to decide their pay ratio between cash and stocks.
Since, then the company’s stock has been taking a beating due to the economic downturn and recession fear amid low consumer confidence. Which has given the company no other option to pause the proposed compensation overhaul and leading to the layoffs.
The company has also rescinded offers along the way and has paused hiring in its non-core business since then. The company’s stock saw a rosy high of $222.87(based on the 10-for-a split) which is now trading under $45.
“We are a company that has always thought about this operational discipline, that when there’s an opportunity, we want to have enough money and bandwidth to go and seize it. We run our company in a way that I think is very unique to a lot of other tech companies,” Mr. Finkelstein said to The Globe and Mail.
“So, when there’s a period of uncertainty, Shopify can get through it easier than others and we can emerge on the other side better, stronger, faster.”