Back to Blog Homepage

Shopify Stock Surges on Surprise Profit Despite Job Cuts and Logistics Business Sale

Shopify has announced that it will be 20% smaller after laying off employees and selling its logistics business to Flexport, as part of an effort to streamline operations and focus on core services. The news came as Shopify announced Q1 earnings, which showed a 15% increase in Gross Merchandise Volume (GMV) year-over-year and a 25% increase in total revenue, exceeding Wall Street projections.

Flexport will become the primary provider of Shop Promise for Shopify merchants, enabling transparent shipping timelines, including two-day and next-day delivery options.

The layoffs mark the second time in 10 months that Shopify has downsized. Last summer, the company cut about 1,000 jobs as it focused on building out client offerings and its in-house fulfillment network.

Despite the downsizing, Shopify’s Q1 earnings and outlook for Q2 suggest that the company is on track for continued growth. In fact, Shopify’s stock surged on May 4th on news of a surprise profit.

About the Author

Daniel Sodkiewicz (Co-founder and CTO)

Daniel is a CTO and co-founder of GeekSeller with years of experience in software development, online marketing, UX design, and e-commerce consulting. Based in Austin, TX, he is an established expert in the industry. Daniel keeps a close eye on the latest trends and news in e-commerce and regularly writes about it on this blog and LinkedIn.

Leave a Reply

Your email address will not be published. Required fields are marked *


Keep up with e-commerce news!
Subscribe to our free newsletter to stay updated on what is happening in the industry. All subscribers receive our Walmart Listing Optimization ebook for free!


Keep up with e-commerce news!

Stay updated on what is happening in the industry. Subscribe to our newsletter and receive our Walmart Listing Optimization ebook for free!