Shopify, a Canadian e-commerce giant, recently laid off 20% of its global workforce in what is its second substantial reduction in staff within the last year. This downsizing includes the divestment of its in-house logistics arm, meaning Shopify no longer has a hand in the warehousing and fulfillment process. In a blog post, CEO Tobi Lütke laid out his reasoning for the layoffs in a way that was seen as distasteful and insensitive on part of the company.
Lütke’s letter describing the layoffs framed it as an effort to give unshared attention to the company’s mission, seemingly suggesting those laid off weren’t making a substantial contribution. To further emphasize this point, Lütke likened the situation to a video game analogy, classifying those eliminated as being focused on side quests as opposed to the “main” mission. As a lifelong gamer, Lütke has implemented gaming-related theme into the company, most notably evident in the creation of Shopify Rebellion, an e-sports team in 2021. Furthermore, Shopify has deemed executive assistants “expansion packs”, another homage to gaming.
While video game analogies may be beneficial in relating common corporate concepts to a wide range of employees, Lütke’s example in this instance was insensitive and carried a subtext that those laid off were expendable non-player characters. Nevertheless, those affected are being provided a generous package that includes 16 weeks of severance, medical benefits, and more. Despite this, many current and former “Shopifolk” find the letter unwelcoming and unnecessary.
Shopify is an e-commerce platform that provides an easy to use platform to over one million businesses. Founded in 2004 by Tobi Lütke, the company has grown to a global scale, with its headquarters located in Ottawa, Canada. In 2021, it was reported by Fortune Magazine that Shopify had an estimated market value of over $82 billion.
Tobi Lütke, the CEO of Shopify, was born and raised in Germany. He studied computer science at the University of Waterloo in Ontario, Canada, and went on to become one of the top minds in the tech industry. Besides Shopify, he has also founded various other businesses, and is a skilled programmer. Lütke has thoroughly incorporated his love of gaming into the company, so his tendency to draw a video game analogy wasn’t particularly surprising, even if it was considered insensitive.
