Shopify to lay off 20% employees, sell logistics arm amid soaring revenue
Shopify will let go of 20% of its workforce and sell its fulfilment service Deliverr even as it reported better-than-expected revenues.
In what will be the second round of layoffs in a year, Canada-based ecommerce will reduce its workforce by 20% and sell its logistics arm Deliverr to end-to-end trading platform Flexport.
Shopify also reported a 25% rise in total revenues to $1.5 billion for the first quarter of 2023. The company's stock jumped up to 17% in pre-market trading in response to the better-than-expected results.
Deliverr will now transfer its fulfilment business, which it bought less than a year ago for $2.1 billion, to Flexport in exchange for 13% equity. The transition, yet to be approved by regulators, will be led by Harsh Abbott, CEO of Deliverr.
Wow Skin Science, a marquee seller on Shopify India has also shifted its entire online store to Dukaan's platform, CEO Sumit Shah tweeted.
"It shows the robustness of Dukaan to handle large-scale operations." Shah tweeted.
Shopify is one of the investors in Flexport. The company partnered with Shopify earlier this year to give the latter's merchants access to its freight services.
Edited by Kanishk Singh
