September 26, 2022
Record-setting inflation levels, a revert back to physical retail, and other effects that stem from re-opening a suppressed economy have not been kind to Shopify’s stock price. With its stock down 77% year to date, the Ottawa-based e-commerce leader has decided to implement some strategic changes.
At its peak in 2021, Shopify employed around 10,000 employees and contractors. Along with extensive layoffs earlier in 2022, the company let go of a further 70 employees this past August, bringing the total worker count to around 8,800.
Along with these layoffs, Shopify has rattled the employee structure at the very highest level. It was recently announced that Amy Shapero, the company’s CFO of 5 years, will step down on October 27. Shapero is to be replaced by Jeff Hoffmeister, a former employee of Morgan Stanley’s technology investment banking group. At the same time, Toby Shannon, the company’s COO, is to be replaced by Kaz Nejatian, the current vice president of product.
Perhaps the most interesting of Shopify’s recent changes is the company’s new compensation system, Flex Comp. The new pay system enables workers to periodically choose how much of their compensation they would like to receive in cash, restricted stock units, and stock options, based on their individual needs. Tia Silas, the company’s chief human resources officer noted that “the vast majority” of Shopify employees received pay increases with the rollout of Flex Comp and that the program has been well-received by current employees. Silas further stated that, “the market-competitive compensation system we’ve implemented will allow us to recruit, reward, and retain the best talent in the world.”
From layoffs to governance changes to new pay structures, Shopify seems determined to combat this e-commerce market slump.
Author: Bayley Winkel