Shopify is set to cut about 10 percent of its global staff, which amounts to approximately 1,000 employees.
The cuts were first reported by the The Wall Street Journal, which cited an internal memo that CEO Tobi Lütke sent to staff on Tuesday.
According to the memo, which Shopify posted online, the layoffs are necessary as the e-commerce boom that fueled Shopify’s growth in recent years has cooled.
The cuts come just more than a month after BetaKit reported that the company told employees at a June 23 town hall that they should lower their expectations regarding company growth, and that hiring will slow.
Shopify had previously set aggressive hiring goals, specifically around engineers, attempting to hire 2,021 roles last year. Lütke told staff at the June town hall that the company no longer needs to target such numbers.
Reports of the layoffs come one day before Shopify is set to its second quarter 2022 financial results. According to The Globe and Mail, analysts lowered their expectations for the company ahead of the results citing the macroeconomic environment.
Last quarter, Shopify’s Q1 2022 results saw the e-commerce company’s revenue growth continue to slow, as the pandemic forces that drove the rise of e-commerce waned. While the company bought Deliverr to bolster its fulfillment network, Shopify’s year-over-year revenue growth slowed in comparison to 2021 even with an increase of about 21 percent.