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☆ Shopify says AI has helped keep its head count flat
▼ + stars: | 2024-05-08 | by ( Madeline Stone | ) www.businessinsider.com time to read: +3 min

Shopify executives said during the company's first-quarter earnings call on Wednesday that its head count has stayed flat for the past three quarters and that using AI has been a major contributing factor. Shopify has been touting its "new shape" since it sold its logistics business and laid off 20% of its workforce in May 2023. This story is available exclusively to Business Insider subscribers. It's also found efficiencies by using AI throughout the company. Internal AI tools have also allowed Shopify to offer multilingual support 24/7, whereas it was previously offered only during set working hours.

Persons: Shopify, We've, Harley Finkelstein, It's, Jeff Hoffmeister, Hoffmeister, crafters, —, Charlie Miner Organizations: SEC, Business, Shopify's Locations: mstone@businessinsider.com

☆ Shopify embraced a 'new shape' after a post-pandemic slump and has charted an 18-month comeback
▼ + stars: | 2024-04-29 | by ( Madeline Stone | ) www.businessinsider.com time to read: +8 min

Read previewIn October 2022, Shopify's once high-flying stock hit its lowest price since before the Covid pandemic. AdvertisementNow, after two rounds of layoffs and a divestment of its fulfillment and logistics business, the picture looks a bit different for Shopify. Shedding a "money-losing logistics business"Dropping logistics and fulfillment is a major part of Shopify's stock comeback story. In May 2023, Shopify announced it would be selling the logistics business entirely to Flexport. In May 2023, Shopify cut another 20% of its workforce as it sold its logistics business to Flexport.

Persons: —, Shopify's, Shopify, Oppenheimer, Ken Wong, Wong, D.A, Davidson, Gil Luria, Tobi Lütke, Lütke, Luria, Morgan Stanley, Jeff Hoffmeister, Bhavin Shah, GMV, We've, Shah Organizations: Service, Business, Systems, Investors, SEC, Deutsche Bank Locations: Salesforce, mstone@businessinsider.com

☆ Shopify's new price hikes could put pressure on its app developer ecosystem
▼ + stars: | 2024-02-14 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

The price hike comes a year after Shopify raised prices for its base subscription plan. Many have shrugged off the most recent price increase. Shopify frequently touts its third-party app ecosystem as an advantage for merchants looking to grow their business efficiently. Many of the most popular Shopify apps have also raised prices recently. It's possible that some lower-volume Plus merchants will downgrade to more basic subscription options due to cost.

Persons: —, Shopify, Andy Cloyd, Stephen Watson, Cloyd, ” Erman Küplü, Küplü, ” Watson, Jeff Hoffmeister, Hoffmeister Organizations: Service, Merchants, Business, Elysian Solutions, BI Locations: GMV, North America, mstone@insider.com

☆ Shopify shares down after company reports light guidance
▼ + stars: | 2024-02-13 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Shopify shares slid about 10% on Tuesday morning after the Canadian e-commerce company reported better-than-expected earnings for the fourth quarter but gave mixed guidance for the current period. Shopify's light first-quarter guidance overshadowed the earnings and revenue beat. The company said it expects free cash flow margin to be in the high single digits, below Wall Street's projected 13.6%. In a research note published Tuesday, Wedbush analysts highlighted that Shopify's guidance implies operating income "well below our estimates and consensus." The company's forecast implies adjusted operating income of $178 million, while consensus estimates are for $382 million, the analysts said.

Persons: Jeff Hoffmeister, Wedbush, Shopify Locations: Ottawa , Ontario, Canada

☆ Shopify shares surge 20% on earnings beat, rosy guidance
▼ + stars: | 2023-11-02 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Gross merchandise volume, or the total volume of merchandise sold on the platform, rose 22% to $56.2 billion during the quarter. The solid earnings beat comes after Shopify, which makes tools for companies to sell products online, has sharpened its focus on costs. The sale included Deliverr, the last-mile delivery company Shopify acquired for $2.1 billion last May. During the quarter, Shopify announced a partnership with Amazon that allows its merchants fast and free Prime delivery on their storefronts off Amazon. Shopify also invested in online marketplace Faire as part of a deal that will make it the recommended wholesale platform for Shopify merchants.

Persons: Shopify, Gross, FactSet, Jeff Hoffmeister Organizations: Amazon

It also provides apps for merchants to sell directly on marketplaces like Amazon and Walmart, which are also building out AI additions for merchants. As part of the AI suite, Shopify launched AI app Sidekick, which helps sellers decide on inventory, promotions and marketing, lessening their dependence on third-party widgets. Analysts expect sales of Shopify's merchant products, which includes Shopify Magic, to increase 21% to $1.2 billion compared to last year, the first deceleration in four quarters. Shopify Magic is part of the company's long-term strategy to gain more merchants on its platform that will pay higher prices for its services. Shopify's subscriptions include Shopify Magic at no additional charge.

Persons: Chris Wattie, Jeff Hoffmeister, Shopify, Michael Morton, Hunter, Harley Finkelstein, Angelo Zino, Zino, Arriana McLymore, Josie Kao Organizations: REUTERS, Walmart, CFRA, Thomson Locations: Ottawa , Ontario, Canada, LSEG, Ottawa, New York City

☆ Shopify's midlife crisis: How a surprise pivot away from logistics capped the e-commerce giant's whirlwind year
▼ + stars: | 2023-06-29 | by ( Madeline Stone | Emma Cosgrove | ) www.businessinsider.com time to read: +12 min

But Shopify's logistics acquisitions, which came with around 550 more staff altogether, started to look like dead weight after the shine of the initial announcements wore off. By the beginning of 2023, the attitude toward logistics inside Shopify had shifted to palpable frustration, four people who worked for Shopify's logistics division said. Lance McMillan/Toronto Star via Getty ImagesIndependent of logistics, Shopify saw massive cultural shifts in the past several years. One core tenet of Shopify's work culture is "default to open," meaning it values transparency and sharing information with employees. The letter referred to Shopify's logistics work of the past four years as a "side quest" that distracted the company from its "main quest."

Persons: Shopify, it's, Oppenheimer, Ken Wong, Lance McMillan, crafters, Tobias Lütke, Slack, —, Lütke, Shopify's, I've, Toby Shannan, Morgan Stanley, Jeff Hoffmeister, Bobby Morrison, Allan Leinwand, Kaz Nejatian, Nejatian, Madeline Stone, Emma Cosgrove Organizations: Employees, Amazon, Systems, Kiva Systems, Toronto Star, Getty, miscalculating, Facebook, ecosgrove Locations: Shopify, Ottawa , Ontario, —, Silicon

Shopify announced Thursday that it is cutting 20% of staff and selling off its logistics business. Shopify's CEO Tobi Lütke announced early Thursday that the company is cutting 20% of its workforce and selling the majority of its logistics business to supply chain technology company Flexport. It's the right thing for Shopify but it negatively affects many team members who we admire and love working with. Analysts and insiders had also been expecting a major change to Shopify's logistics division, Insider reported Wednesday. But 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to UK grocery firm Ocado for an undisclosed sum.

☆ Shopify president says he has never 'felt more sure about the future of this company' in leaked internal audio shared after company conducts layoffs and sells its logistics business
▼ + stars: | 2023-05-04 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

In a two-minute video shared with Shopify employees Thursday morning, company president Harley Finkelstein reiterated his belief that the e-commerce firm is well-positioned for the future. In his video message to employees, Finkelstein said that difficult times are what define "the character of a company." "Making a series of popular decisions makes a popular company," he said. 6 River Systems, a warehouse automation and robotics company Shopify purchased in 2019 for $450 million, is being sold to the UK grocery firm Ocado for an undisclosed sum. Making a series of popular decisions makes a popular company.

☆ Shopify insiders and analysts are bracing for a strategy shift in the company's logistics business
▼ + stars: | 2023-05-03 | by ( Madeline Stone | Emma Cosgrove | ) www.businessinsider.com time to read: +6 min

Insiders and analysts expect a major shakeup to Shopify's logistics strategy. "The fulfillment investment is sort of the biggest anchor that's keeping the business from being more profitable." That may be a welcome change for investors, who have been voicing increasing concern with the level of investment Shopify had planned. And Shopify Logistics CEO Aaron Brown told Insider in February that 6 River Systems' warehouse automation would be "the machine in the background making everything work." Weiss then asked if Shopify Logistics is intended to turn a profit.

☆ Shopify is 'flattening' its org structure to incentivize more employees to become individual contributors
▼ + stars: | 2023-03-01 | by ( Madeline Stone | ) www.businessinsider.com time to read: +5 min

Shopify is making changes to its managerial structure that will likely result in fewer middle managers, "flattening" its organizational structure. Starting in mid-March, employees will choose to become either a full-time manager or a "crafter," as Shopify calls individual contributors. Silas added that Shopify expects to have fewer managers overall, referring to the change as a "flattening" of the organization. Shopify also removed all employee meetings that were scheduled for Wednesdays and limited large team events to specific hours on Thursdays. If you're a Shopify employee with a story to share, contact this reporter at mstone@insider.com or on the encrypted messaging app Signal at (646) 889-2143 using a nonwork phone.

☆ Shopify's prices will go up by as much as 33% in some cases, but analyst say merchants aren't going anywhere
▼ + stars: | 2023-01-31 | by ( Madeline Stone | ) www.businessinsider.com time to read: +6 min

Analysts say Shopify's products offer a much better value than their competitors'. He added that many merchants pay more in fees for third-party apps and add-ons than they do for a Shopify subscription. With those fees in mind, an increase to the monthly subscription fee would seem relatively small, Pfau argued. Luria said that it's possible Shopify's price hikes could "upset smaller merchants for whom this is a big expenditure," particularly amid inflation and economic uncertainty. Shopify's price hikes come as the company makes changes to its leadership team.

☆ Shopify had a bumpy 2022, with a stock split, layoffs, and more. These are the biggest stories about the e-commerce company.
▼ + stars: | 2022-12-29 | by ( Madeline Stone | ) www.businessinsider.com time to read: +10 min

After seeing explosive sales and revenue growth during the earlier days of the Covid-19 pandemic, the Canadian e-commerce company saw its business come back down to earth this year. Shopify employees are granted restricted stock units, or RSUs, in addition to their base salaries. MayOn May 2, Shopify announced plans to acquire e-commerce fulfillment startup Deliverr for more than $2 billion. The acquisition was intended to help Shopify merchants offer one and two-day shipping to their customers. On December 15, Shopify announced that it was doubling down on its sustainability efforts by investing $11 million in carbon removal projects.

☆ Shopify's new C-suite: After a year of high turnover, the new leaders at Shopify include a CFO poached from Morgan Stanley and a new HR lead who is working to overhaul the e-commerce company's perform
▼ + stars: | 2022-10-31 | by ( Madeline Stone | ) www.businessinsider.com time to read: +11 min

Here are the people leading the e-commerce company through its next phase. Leinwand was previously senior vice president of engineering at Slack, and before that he was CTO at ServiceNow. Tia Silas, chief human resources officerTia Silas, Shopify's chief talent officer. John Asante, chief information-security officerJohn Asante, Shopify's chief information-security officer. Bobby Morrison, chief revenue officerMorrison joined Shopify as chief revenue officer — a new role for Shopify, reporting to the COO — in August.

☆ Shopify's new guard: Meet the 11 people leading the company after rampant turnover wiped out most of its C-suite
▼ + stars: | 2022-09-28 | by ( Madeline Stone | ) www.businessinsider.com time to read: +11 min

Here are the people leading the e-commerce company through its next phase. Leinwand was previously senior vice president of engineering at Slack, and before that he was CTO at ServiceNow. Tia Silas, chief talent officerTia Silas, Shopify's chief talent officer. John Asante, chief information-security officerJohn Asante, Shopify's chief information-security officer. Bobby Morrison, chief revenue officerMorrison joined Shopify as chief revenue officer — a new role for Shopify, reporting to the COO — in August.

☆ Amazon is walking back staffers' raises after an internal bug miscalculated compensation
▼ + stars: | 2022-09-23 | by ( Jordan Parker Erb | ) www.businessinsider.com time to read: +5 min

We're looking at that and more today — but first, let's kick things off with the latest on Amazon compensation. Leaked email reveals that Amazon is walking back employees' raises. A software bug caused Amazon to overstate some corporate employees' raise packages, according to the email. Per the email, the glitch caused Amazon to overstate bonuses for recently-promoted employees by relying on older, higher stock prices for Amazon shares. In response, Amazon nearly doubled its base pay cap and promised raises, but that wasn't enough to quell the gripes.

☆ Shopify's C-suite revamp could signal more acquisitions and a focus on services over software, analysts say
▼ + stars: | 2022-09-22 | by ( Madeline Stone | ) www.businessinsider.com time to read: +7 min

Most of Shopify's C-suite has been replaced in the past two years. "There was some hope that they would reprioritize software, whether it's marketing-automation software or customer-engagement software," he added. The former chief technology officer Jean-Michel Lemieux, chief legal officer Joe Frasca, and chief talent officer Brittany Forsyth all departed in 2021. The chief product officer Craig Miller left the company a few months before that, in fall 2020. Shopify has yet to formally fill the chief product officer role, whose responsibilities Lütke said he would take on in the wake of Miller's departure.

Vanna Krantz, a former Disney executive, was named chief financial officer, as company also named a new CEO. FASB Moves Forward With New Disclosure Requirements for Joint VenturesJulie Whalen will join the online travel company later this month, after a decade as finance chief of Williams-Sonoma. Shopify Hires Morgan Stanley Investment Banker as Its Next CFO Shopify named investment banker Jeff Hoffmeister as its next chief financial officer, a move that comes after the e-commerce company in July said it would cut its workforce by 10%. Grab Zeroes In on Costs as Super App Looks to Cut Losses Grab’s finance chief is pruning the company’s spending as the ride-hailing and food-delivery app looks to get closer to break-even. SEC Warns Chinese Companies About Risks of Auditor Changes As businesses switch auditors to avoid U.S. delistings, the agency’s acting chief accountant warns of potential investigations and enforcement actions.

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