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{"id":30967,"date":"2023-05-04T21:47:37","date_gmt":"2023-05-04T21:47:37","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/"},"modified":"2023-05-04T21:47:38","modified_gmt":"2023-05-04T21:47:38","slug":"how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/","title":{"rendered":"How Shopify bungled its latest layoffs and made employees feel like NPCs"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/<\/a><\/br>
\nHow Shopify bungled its latest layoffs and made employees feel like NPCs<\/br>
\n2023-05-04 21:47:37<\/br><\/p>\n

\n

Shopify laid off 20% of its global workforce today<\/a> \u2013 its second sizeable employee culling after a reduction of 10% announced last July. This latest downsizing also includes the wholesale divestment of an entire line of business: Shopify\u2019s in-house logistics arm, which sought to own more of the warehousing and fulfillment chain for its merchants.<\/p>\n

Shopify CEO Tobi L\u00fctke\u2019s internal message to the entire company was shared as an external-facing blog post<\/a> on the corporate newsroom (which \u2013 disclosure \u2013 I helped establish when I worked for the company way back in 2018\/19). The letter is a particularly egregious example of layoff communications done poorly, but it stands as an accurate representation of L\u00fctke\u2019s basic inability to empathize with the situation of a number of employees under his company\u2019s charge.<\/p>\n

L\u00fctke frames the 20% reduction as an effort to \u201cpay unshared attention to [Shopify\u2019s] mission,\u201d which itself already starts things off on strange footing, since it presents those impacted as effectively working on distractions and unworthy of the time and focus they were \u2018sharing\u2019 with the company\u2019s core focus. The letter expands on this \u2013 to even more insensitive effect \u2013 by quickly drawing an analogy between Shopify and video game mechanics, distinguishing between the company\u2019s \u201cmain\u201d and \u201cside quests.\u201d<\/p>\n

In gaming, there\u2019s often a critical path \u2013 the main storyline \u2013 which focuses on one primary goal. Open-world gaming in particular also include a wide range of side quests, which may be strongly, loosely or not at all related to the core story and goal.<\/p>\n

L\u00fctke is an avid gamer who has incorporated that love into the company in many ways, including Shopify Rebellion, an e-sports team<\/a> created in 2021. Executive assistants at Shopify are also known as \u201cexpansion packs\u201d \u2013 a reference to add-on game content that is typically added post-release to provide more gameplay experience for the gamer.<\/p>\n

Video game comparisons at Shopify can be useful, in that they simplify and make relatable obtuse corporate concepts that might otherwise be inaccessible. That\u2019s useful at a company that still prides itself on hiring from a range of backgrounds, including from beyond traditional educational or professional tech industry experience.<\/p>\n

The downside, however, is evident in cases like today\u2019s letter. L\u00fctke paints deciding who was included in today\u2019s layoffs as looking at side quests and figuring out which weren\u2019t contributing to the main \u2018game\u2019 story of the company. This included not just people focused on side bets like logistics that Shopify has been pursuing for years, but also on managers whose main job included \u201cheavy layers of process, approvals, meetings and\u2026 side quests,\u201d per L\u00fctke\u2019s characterization.<\/p>\n

The letter also cites a major shift in direction prompted by technological development as the cause for a big shift in company focus and priorities: Namely, the \u201cdawn of the AI era\u201d and the fact that \u201cShopify has the privilege of being amongst the companies with the best chances of using AI to help our customers.\u201d What it doesn\u2019t note, however, is that the existing direction, and all the various side quests that Shopify has invested in heavily over the years, including logistics, are bets made either directly by, or with the full-throated endorsement of, its CEO and founder \u2013 L\u00fctke himself.<\/p>\n

I\u2019m still in touch with many, many Shopifolk (yes it\u2019s a cringey moniker, but also a strangely affectionate one) and there\u2019s a pervasive sentiment that L\u00fctke\u2019s framing of this workforce reduction is incredibly insensitive. The subtext, drawn from taking the video game to its logical conclusion, is that those affected by today\u2019s layoffs are little more than NPCs \u2013 non-player characters, those digital beings who populate game worlds only to fill it out and make it more engaging and believable for the only real person of consequence \u2013 the gamers themselves.<\/p>\n

Shopify did get one thing right by offering a generous package that includes 16 weeks of severance, plus medical benefits and additional supplemental compensation, including assisting to finance a replacement laptop. But in a moment where other CEOs have at least taken the time to express regret and reflect on past choices, this one instead chose to draw an elaborate comparison to an escapist leisure pursuit, and waxed philosophical about corporate institutional cruft. At least some under-appreciated NPCs now get a chance to become players in their own right.<\/p>\n

Note: I worked for Shopify from 2018 to 2019 but hold no shares or financial interest in the company.<\/em><\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:https:\/\/techcrunch.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/ How Shopify bungled its latest layoffs and made employees feel like NPCs 2023-05-04 21:47:37 Shopify laid off 20% of its global workforce today \u2013 its second sizeable employee culling after a reduction of 10% announced last July. This latest downsizing also includes the wholesale divestment of an entire line of business: Shopify\u2019s in-house logistics […]<\/p>\n","protected":false},"author":1,"featured_media":30968,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-30967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nHow Shopify bungled its latest layoffs and made employees feel like NPCs - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Shopify bungled its latest layoffs and made employees feel like NPCs - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2023\/05\/04\/how-shopify-bungled-its-latest-layoffs-and-made-employees-feel-like-npcs\/ How Shopify bungled its latest layoffs and made employees feel like NPCs 2023-05-04 21:47:37 Shopify laid off 20% of its global workforce today \u2013 its second sizeable employee culling after a reduction of 10% announced last July. 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