Shopify cuts 20% of its workforce; shares surge on earnings beat

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The cuts represent the second round of layoffs for Shopify in the last year.

6 River Systems, the warehouse robot maker it acquired in 2019 for $450 million, to U.K. retail tech company Ocado. Terms of the Flexport and Ocado deals weren't disclosed.

The moves bring an end to Shopify's yearslong effort to build its own logistics business. Lütke called that effort a "worthwhile side quest" that could be an independent company in the future, but said Shopify is refocusing its priorities on e-commerce software, as well as newer initiatives such as artificial intelligence.

"Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers," Lütke said. Shopify also beat Wall Street estimates for the first quarter. The company reported revenue of $1.51 billion, which exceeded projections of $1.43 billion, according to Refinitiv. It posted earnings of 5 cents per share, while analysts were expecting a loss of 4 cents per share.

Shopify also beat Wall Street estimates for the first quarter. The company reported revenue of $1.51 billion, which was up 25% from a year earlier, and exceeded Wall Street's projected $1.43 billion, according to Refinitiv.while analysts were expecting a loss of 4 cents per share. In the year-ago period, Shopify reported a net loss of $1.5 billion, or $1.17 a share, a year ago.

 

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