Shopify is looking to AI to keep its workforce lean
In an internal memo to staff, which he then made public after it got leaked yesterday, Shopify CEO Tobi Lütke announced a raft of new company policies and expectations around AI — most notably the fact that Shopify staffers must now demonstrate why the tech can’t do the job itself before even asking about new hires.
Lütke also outlined that using AI effectively is now a “fundamental expectation” of all staff and that effective usage would be added to company-wide performance and peer reviews, as the online shopping software business doubles down on the tech’s potential across the board.
Shopify leaning in to increasing AI usage comes as the company continues to “quietly” cut staff in its customer support division, on the back of broader layoff rounds that have seen headcount tumble over the last couple of years.
The newly Nasdaq-listed company has been making efforts to downsize for years, with (sometimes controversial) rounds of cutbacks affecting as much as one-fifth of its global workforce at a time. While Shopify’s headcount peaked at approximately 11,600 employees by December 2022, per the company’s annual filings, it came in ~3,300 (28%) lighter by the end of the next year and fell a further 2% in 2024, as well.
Clearly, Lütke feels that AI could be key in maintaining Shopify’s lean(er) machine moving forward.
The newly Nasdaq-listed company has been making efforts to downsize for years, with (sometimes controversial) rounds of cutbacks affecting as much as one-fifth of its global workforce at a time. While Shopify’s headcount peaked at approximately 11,600 employees by December 2022, per the company’s annual filings, it came in ~3,300 (28%) lighter by the end of the next year and fell a further 2% in 2024, as well.
Clearly, Lütke feels that AI could be key in maintaining Shopify’s lean(er) machine moving forward.
