Shopify: 2,300 jobs cut
CEO Tobi Lutke cut 20% of workforce, issued memo requiring employees to prove tasks cannot be done by AI before requesting new hires. AI chatbot Sidekick replaced merchant support roles. The company explicitly cited AI and automation as a primary driver of the workforce reduction. This is part of a broader pattern in E-commerce/Tech where companies are restructuring operations around AI capabilities while reducing headcount in functions susceptible to automation.
Conservative
1,380
Core Estimate
2,300
Upper Bound
2,300
Sources
Shopify CEO mandates proving AI can't do job before any new hire
Shopify CEO Tobi Lutke issued memo requiring all managers to prove AI cannot do a job before requesting new headcount. AI usage added to performance reviews. 'Everyone means everyone' including executives.