News just in, Shopify cuts 20% of their workforce

Foreign just announced that they are laying off 20% of their workforce. I actually think this is a really smart move by Shopify. Over the last few years, they've been really focused on what their competition is doing, which means they've been distracted from innovating on their core product, which is their e-commerce platform.

The part of the business they're shutting down is their logistics business. This division was established to compete with Amazon and aimed at attracting Amazon's customer base to Shopify. However, the problem lies in the fact that logistics is not Shopify’s core competency. They had to build a large team to try and understand logistics, operations, and all associated challenges.

At the end of the day, Shopify excels in development and building platforms. By discontinuing this part of the business, they can focus on what they are genuinely good at—creating an amazing product for entrepreneurs.

Keywords

Shopify
Layoffs
E-commerce platform
Logistics business
Amazon competition
Core competency
Innovation
Entrepreneurs

FAQ

Q: Why is Shopify laying off 20% of their workforce? A: Shopify is laying off 20% of their workforce to focus more on their core competency, which is their e-commerce platform. The layoffs will primarily impact their logistics business.

Q: What part of the business is Shopify shutting down? A: Shopify is shutting down its logistics business, which was initially developed to compete with Amazon.

Q: How will this move affect Shopify’s core product? A: By discontinuing the logistics division, Shopify can redirect its resources and energy towards innovating and improving its e-commerce platform, thus creating a better product for entrepreneurs.

Q: What was the purpose of Shopify’s logistics business? A: The logistics business was established to attract Amazon’s customer base to Shopify by offering comparable logistics and operations solutions.

Q: Why did Shopify struggle with their logistics business? A: Logistics is not Shopify's core competency; they had to build a large team and invest heavily to understand and manage logistics and operations, which diverted their focus from their primary strength, building e-commerce platforms.