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According to LinkedIn posts circulating, Shopify has begun terminating its employees in its Singapore office. While a Shopify spokesperson was unable to confirm how many exact staff will be impacted in the Singapore office, he confirmed that on a global level 10% of its workforce of 10,000 employees will be impacted. Shopify first began operations in 2006, and seven years later began its operations in Singapore.

This comes following a global statement released on 19 July, after Shopify CEO Tobi Lutke acknowledged that the company's plan to grow quickly during the pandemic was unsuccessful. Since the start of the year, its shares have dropped 73%.

The cuts affected all of Shopify’s divisions, where the most impacted roles are in recruiting, support and sales, according to Lutke in a memo to staff. He explained that the company had decided to eliminate "over-specialised and duplicate roles, as well as some groups that were convenient to have but too far removed from building products".

To compensate the employees who had been laid off, Shopify reimbursed them with various initiatives including 16 weeks of severance pay, plus an additional week for every year of tenure at Shopify, an extension of medical benefits, a kickstart allowance for purchases like new laptops and other needs, and free Shopify subscription plan for anyone drawn to the path of entrepreneurship.

As a result of the slowdown in revenue growth, other well-known US internet companies like Snap, Netflix, and Paypal have all struggled this year. In Singapore, Shopee is cutting off several workers from its Southeast Asian food delivery and online payment divisions. Additionally, a cross-border team that supports the Spanish market is being reduced, as well as employees in Mexico, Argentina, and Chile.

In June, Southeast Asia eCommerce platform iPrice Group has also laid off 20% of its 250 employees as part of the company's measures in focusing its business on its core mission “to help people save money” shopping online.