In order to concentrate on its main business, Canadian multinational e-commerce company, Shopify, stated that it is selling its logistics division and laying off 20% of its workers.
The development was contained in a statement from Shopify CEO Tobias “Tobi” Lütke titled “Important team and business changes.”
He declared that the company would concentrate on its primary line of business, e-commerce, while also looking into the prospects presented by the emergence of artificial intelligence.
Shopify, in his opinion, enjoys the distinction of being among the businesses with the best potential for utilising AI to benefit their clients.
According to the e-commerce CEO, “We are changing the shape of Shopify significantly today to pay unshared attention to our mission.
“There are a number of consequences to this, and I don’t want to bury the lede: after today Shopify will be smaller by about 20% and Flexport will buy Shopify Logistics; this means some of you will leave Shopify today.
“I recognize the crushing impact this decision has on some of you, and did not make this decision lightly.”
This development follows the sale of its logistics division to 10-year-old Flexport, which the company claims was motivated by a desire to concentrate on its core business