Shopify layoffs: Company faces class action over severance offers | Globalnews.ca

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Shopify layoffs: Company faces class action over severance offers

Inc. reneged on a deal it offered some employees who were laid off in a recent round of cuts.

However, once workers signed the agreements and before the deadline passed, Shopify allegedly told departing staff they would instead be given substantially smaller sums than were initially offered. When their severance offers were revised, Samfiru said workers were sent a “vague statement about miscalculating.”“We’ve seen anywhere from a $10,000 to $50,000 and $60,000 difference between what individuals accepted and what Shopify now says they’re not going to get. We are not talking about anything minor here.”Samfiru alleges Shopify’s actions constitute a breach of contract and is seeking $80 million in damages and $50 million in punitive, aggravated and exemplary damages.

In an open letter announcing the layoff, Shopify founder and chief executive Tobi Lutke promised departing staff at least 16 weeks of severance plus a week for every year of tenure at Shopify. Medical benefits and an employee assistance program will cover departing staff over the same period.Those leaving will also be able to keep their office furniture and though they’ll have turn in their company laptops, Lutke said Shopify promised to help pay for new ones.

 

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