Shopify Lays Off 20% of Employees As It Embraces More Cost-Cutting (theinformation.com) 13
Shopify said on Thursday it would lay off 20% of employees and would sell its logistics business to Flexport, as the e-commerce company pushes to cut costs further and refocus on its core business. From a report: Shopify's first quarter revenue increased 25% from the same period last year to $1.5 billion, topping the company's own guidance for revenue growth in the high-teen percentages. Executives said on Thursday they expected revenue for the second quarter to grow at a similar rate to the first quarter. It reported free cash flow of $86 million, after burning cash in the year-earlier period, and projected free cash flow profitability for the rest of the year.
Hosting support is terrible (Score:1)
Shopify has been host to several fraudulent and/or questionable sites that they have granted countenance to, with practically no support to report them. They can crash and burn for all I care.
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The weird thing is that this company I'm buying from is in the same state as me, and
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More layoffs due to high profits (Score:2)
Refocus on the core business as in make the executives and shareholders more profit? Seems like the pending recession is partly a self-fulfilling prophecy and at the same time an excuse to up the greed factor. It's a strange world where labor is considered a liability and cost center on the one hand, and on the other laborers are expected to give their hearts and souls to the company, sacrificing their lives (metaphorically mostly) even, doing more for less.
Most of it is just dumping work on survivors (Score:2)
Eventually you burn your survivors out. So you're forced to hire up a bit. Not to the old levels, so you're working them an extra 4 or 5 hours a week for the same or less pay, but a bit.
Then as soon as everyone's recovered enough you do another
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Or they lost $600 million last year and are trying to stay in business and cut dead weight. But no. It is a conspiracy. Socialism good! Capitalism bad!
Sounds like something I heard a US teacher's union say recently... https://thereconnaisance.subst... [substack.com]
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It's both, actually.
The way executive pay is structured, they are rewarded basically solely for keeping short-term stock value perpetually rising. So they make decisions that pump that value as much as possible, monetizing anything that can be monetized even at the cost of customer satisfaction and long-term viability of the company. You can't blame the C*O for that -- they're acting rationally, doing the exact thing they're paid to do. So whatever can be sold then rented will be sold then rented, vital p
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What the hell powers are you talking about? It is only the Fed that is cracking down on interest rates because inflation is not tamed. It is a blunt axe the Fed is using but there it is.
Now go back to imagining "powers" and some "conspiracy" in the back of your head.
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What he means is that everyone is using this as an excuse to do layoffs which will do more to bring on a recession than the Fed interest rate hikes will. At best it's a double whammy. Rising interest rates plus no job. Most of these companies are in no real trouble. The pandemic pushed profits up to crazy highs. As the recession hits, it will hurt the lower middle class the most. The executive class will feel practically nothing, which is why they are so exciting to be laying off so many people.
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