Two and a half months ago, Shopify Inc. president Harley Finkelstein said the company wasn’t planning any more layoffs after slashing 10 per cent of its workforce the previous summer. Yet, following first-quarter earnings on May 4, Shopify announced it was cutting 20 per cent, or more than 2,000, staffers as it sheds a strategic part of the business once meant to expand the company beyond digital e-commerce products.
Business
‘Some of you will leave Shopify today’: What to know about the tech giant’s latest layoffs
What happened?
On May 4, Shopify released first-quarter financials that showed the company earned $1.5 billion in revenue for the period ending March 31. The company beat analyst consensus on its revenue by 5.1 per cent, ATB Capital Markets Inc. analyst Martin Toner said in a note to clients.
In a separate letter, linked to the financials report, Shopify chief executive Tobias Lütke announced more layoffs and the sale of its logistics unit to Flexport Inc., a supply chain management and logistics company based in San Francisco. “After today Shopify will be smaller by about 20 per cent and Flexport will buy Shopify Logistics; this means some of you will leave Shopify today,” he said.
Shopify’s e-commerce focus
Shopify leadership said following the first-round of layoffs that the reductions would help the company refocus on e-commerce. Since those cuts, Shopify has announced new partnerships, a flurry of product and software updates for customers and a significantly higher pricing plan. It also purchased a logistics company, Deliverr Inc., for US$2.1 billion last July, in a bid to build a fulfilment business internally, part of a renewed strategic plan to get into the delivery space, much like Amazon.com Inc. The deal came just weeks before Shopify announced it would lay off around 1,000 staffers.
Shopify began building its logistics business in 2019, calling it Shopify Fulfillment Network. In the company’s management discussion and analysis (MD&A) for its fourth quarter, ended Dec. 31, Shopify said it expected to continue investing in the logistics arm of the business, but it identified its ability to “successfully scale, optimize and operate Shopify Fulfillment Network” as a risk factor.
Shopify’s performance
Shopify is one of the biggest technology companies to come out of Canada. In its latest earnings, the company reported gross merchandise volume was up 15 per cent year over year at $49.6 billion. In other words, it handled more than $49-billion worth of goods on its online platform, which allows business owners and companies to host their e-commerce business.
In 2020 Shopify became Canada’s most valuable company by market cap, overtaking Royal Bank of Canada. In November 2021, its share price peaked about $200, before bottoming out in October 2022, around $35 as it became evident e-commerce was losing its lustre.
In July, Lütke said the company made a bet at the height of COVID-19 that e-commerce would take off. “It’s now clear that bet didn’t pay off,” he wrote in an email to staffers, published online.
Investors happy
Investors have responded positively to the news, Toner said.
“The headcount reductions have positive implications for their path to profitability,” he said. ” (In) the fulfilment effort, there was a lot of opportunity but there was a lot of risk. And I suspect investors would prefer that Shopify pursue delivering fulfilment solutions to their merchants in this lower risk way.”
Shopify shares closed the day at $77.65 in Toronto May 4, up more than 23 per cent from the previous market close.
By early afternoon, shares of Shopify climbed more than 22 per cent. The stock price was $77.46 as of 1:22 p.m. in Toronto.
With additional reporting from Bloomberg and Reuters
Business
Hiring Is a Process of Elimination
Job seekers owe it to themselves to understand and accept; fundamentally, hiring is a process of elimination. Regardless of how many applications an employer receives, the ratio revolves around several applicants versus one job opening, necessitating elimination.
Essentially, job gatekeepers—recruiters, HR and hiring managers—are paid to find reasons and faults to reject candidates (read: not move forward) to find the candidate most suitable for the job and the company.
Nowadays, employers are inundated with applications, which forces them to double down on reasons to eliminate. It’s no surprise that many job seekers believe that “isms” contribute to their failure to get interviews, let alone get hired. Employers have a large pool of highly qualified candidates to select from. Job seekers attempt to absolve themselves of the consequences of actions and inactions by blaming employers, the government or the economy rather than trying to increase their chances of getting hired by not giving employers reasons to eliminate them because of:
- Typos, grammatical errors, poor writing skills.
“Communication, the human connection, is the key to personal and career success.” ― Paul J. Meyer.
The most vital skill you can offer an employer is above-average communication skills. Your resume, LinkedIn profile, cover letters, and social media posts should be well-written and error-free.
- Failure to communicate the results you achieved for your previous employers.
If you can’t quantify (e.g. $2.5 million in sales, $300,000 in savings, lowered average delivery time by 6 hours, answered 45-75 calls daily with an average handle time of 3 and a half minutes), then it’s your opinion. Employers care more about your results than your opinion.
- An incomplete LinkedIn profile.
Before scheduling an interview, the employer will review your LinkedIn profile to determine if you’re interview-worthy. I eliminate any candidate who doesn’t have a complete LinkedIn profile, including a profile picture, banner, start and end dates, or just a surname initial; anything that suggests the candidate is hiding something.
- Having a digital footprint that’s a turnoff.
If an employer is considering your candidacy, you’ll be Google. If you’re not getting interviews before you assert the unfounded, overused excuse, “The hiring system is broken!” look at your digital footprint. Employers are reading your comments, viewing your pictures, etc. Ask yourself, is your digital behaviour acceptable to employers, or can it be a distraction from their brand image and reputation? On the other hand, not having a robust digital footprint is also a red flag, particularly among Gen Y and Gen Z hiring managers. Not participating on LinkedIn, social media platforms, or having a blog or website can hurt your job search.
- Not appearing confident when interviewing.
Confidence = fewer annoying questions and a can-do attitude.
It’s important for employers to feel that their new hire is confident in their abilities. Managing an employee who lacks initiative, is unwilling to try new things, or needs constant reassurance is frustrating.
Job searching is a competition; you’re always up against someone younger, hungrier and more skilled than you.
Besides being a process of elimination, hiring is also about mitigating risk. Therefore, being seen as “a risk” is the most common reason candidates are eliminated, with the list of “too risky” being lengthy, from age (will be hard to manage, won’t be around long) to lengthy employment gaps (raises concerns about your abilities and ambition) to inappropriate social media postings (lack of judgement).
Envision you’re a hiring manager hiring for an inside sales manager role. In the absence of “all things being equal,” who’s the least risky candidate, the one who:
- offers empirical evidence of their sales results for previous employers, or the candidate who “talks a good talk”?
- is energetic, or the candidate who’s subdued?
- asks pointed questions indicating they’re concerned about what they can offer the employer or the candidate who seems only concerned about what the employer can offer them.
- posts on social media platforms, political opinions, or the candidate who doesn’t share their political views?
- on LinkedIn and other platforms in criticizes how employers hire or the candidate who offers constructive suggestions?
- has lengthy employment gaps, short job tenure, or a steadily employed candidate?
- lives 10 minutes from the office or 45 minutes away?
- has a resume/LinkedIn profile that shows a relevant linear career or the candidate with a non-linear career?
- dressed professionally for the interview, or the candidate who dressed “casually”?
An experienced hiring manager (read: has made hiring mistakes) will lean towards candidates they feel pose the least risk. Hence, presenting yourself as a low-risk candidate is crucial to job search success. Worth noting, the employer determines their level of risk tolerance, not the job seeker, who doesn’t own the business—no skin in the game—and has no insight into the challenges they’ve experienced due to bad hires and are trying to avoid similar mistakes.
“Taking a chance” on a candidate isn’t in an employer’s best interest. What’s in an employer’s best interest is to hire candidates who can hit the ground running, fit in culturally, and are easy to manage. You can reduce the odds (no guarantee) of being eliminated by demonstrating you’re such a candidate.
_____________________________________________________________________
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
Business
Carry On Canadian Business. Carry On!
Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.
I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.
Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.
Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.
Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca
Business
Imperial to cut prices in NWT community after low river prevented resupply by barges
NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.
Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.
The air transportation increase, it further states, will be implemented over a longer period.
It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.
Gasoline and heating fuel prices approached $5 a litre at the start of this month.
Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.
“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.
The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.
“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.
Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.
Additionally, she said the government has donated $150,000 to the Norman Wells food bank.
In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.
It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.
This report by The Canadian Press was first published Oct. 21, 2024.
The Canadian Press. All rights reserved.
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