(OTTAWA) Shopify announced Thursday that it will cut its workforce by about 20% and sell its logistics business to Flexport, a supply chain management company.
The Ottawa-based e-commerce company touted the moves as a way to help it focus on its core quest to facilitate commerce.
In an open letter, CEO Tobi Lutke didn’t quantify how many employees would leave the company, but before Shopify laid off about 1,000 employees last summer, it had about 10. 000 employees.
The proportion of 20% of the remaining workers would represent approximately 1800 people.
Mr. Lutke also explained that the company decided to sell Shopify Logistics to Flexport to help the company become more ambitious and global.
According to the details of the agreement, Shopify will receive shares equivalent to a 13% stake in Flexport and will obtain the possibility of appointing a director to the board of directors of Flexport.
Company in this story: (TSX: SHOP)