- Shopify saw outsized growth in 2020 as the pandemic brought more businesses online.
- But it has also seen some cultural changes, with a wave of longtime employees departing.
- Here’s a rundown of Insider’s reporting on Shopify, including recent departures and cultural issues.
- See more stories on Insider’s business page.
Shopify has been going through some big changes after a year of monster growth.
Founded in 2006, Shopify provides e-commerce tools to small and medium-sized businesses lacking large technology budgets. Early success at the company accelerated in 2020, when the COVID-19 pandemic forced businesses to take their e-commerce operations more seriously, some for the first time, and consumer shopping habits shifted online.
The trends were apparent in Shopify’s financials: It reported 86% revenue growth for 2020, up to $US2.9 ($AU4) billion. Its gross merchandise volume – or the total sales conducted on the platform – grew 96% year over year.
Insiders say that the past year has meant changes for Shopify’s culture, too.
Here’s a rundown of Insider’s reporting on Shopify, including recent departures, cultural issues, growth ambitions, and high-profile partnerships.
Cultural stumbles frustrated some employees
Current and former employees told Insider about a series of incidents in which they felt company leadership failed to properly respond to internal debate on racial issues in the summer of 2020. With protests in the aftermath of the murder of George Floyd also taking place at the time, tensions were high.
One such incident involved a conversation among staff about the uploading of a noose emoji to Shopify’s Slack messaging system. As the discussions grew heated, Lütke changed a Slack channel where debate was taking place to be read only. A few weeks after, he sent an email to managers clarifying his stance on the role that companies should play in their employees’ lives.
- Shopify employees found a noose emoji uploaded to Slack. Its CEO then silenced internal discussions.
- Read the essay Shopify’s CEO sent to managers to remind them they are a sports team, not a family. It shows the growing tension between leaders and employees in the corporate world.
Shopify is losing a number of key executives
Shopify announced in April that its chief talent officer, chief technology officer, and chief legal officer would soon be leaving the company. The news followed the departure of Shopify’s chief product officer in September.
But Shopify has also had several departures in its middle ranks. Insider counted at least three vice presidents, one general manager, one managing director, and 11 directors who have left the company since June 2020. Several are leaving to invest in startups or launch their own companies. Some employees have said that Lütke’s management style could be driving people away.
- Shopify is losing nearly half of its C-suite, including key tech leadership. Analysts worry about what it means for its $US1 ($AU1) billion plan to take the fight to Amazon.
- At least 23 execs have left Shopify in the past 12 months for companies like Google, Clio, and Kith. Here’s a running list of who’s left the rapidly growing e-commerce company.
- Shopify has seen a sudden rush of departures despite massive growth. Insiders say CEO Tobi Lütke’s temper and ‘robotic’ personality are partially to blame.
Shopify is poised to grow even more
Shopify has been continually launching new products and entering into new partnerships with Facebook and Google intended to further its reach. This comes as the company sets its sights on further dominating the e-commerce market while fending off Amazon.
Keeping its partners and developers excited about creating new products for its platform is also key to its growth. The better the tools merchants have, the more sales they can get, ultimately generating more revenue for Shopify.
More than 1.7 million merchants now have online stores through Shopify. Some are looking to sell their businesses to roll-up companies with the platform’s help.
The company also plans to hire more than 2,000 engineers in 2021. Shopify now employs more than 7,000 employees.
- Shopify has a cult-like following from developers, and it could be the company’s biggest weapon against Amazon
- Shopify’s Exchange marketplace encourages big roll-up firms to buy up small businesses – but merchants say there are some pitfalls
- Shopify is striking up high-profile partnerships with Google and Facebook, and analysts say it’s a way for it to better compete with Amazon for e-commerce dominance
- Shopify’s 35-year-old president explains why he doesn’t consider Amazon a competitor