In what will be the second round of layoffs in a year, Canada-based ecommerce Shopify will reduce its workforce by 20% and sell its logistics arm Deliverr to end-to-end trading platform Flexport.
Shopify also reported a 25% rise in total revenues to $1.5 billion for the first quarter of 2023. The company’s stock jumped up to 17% in pre-market trading in response to the better-than-expected results.
Deliverr will now transfer its fulfilment business, which it bought less than a year ago for $2.1 billion, to Flexport in exchange for 13% equity. The transition, yet to be approved by regulators, will be led by Harsh Abbott, CEO of Deliverr.
Wow Skin Science, a marquee seller on Shopify India has also shifted its entire online store to Dukaan’s platform, CEO Sumit Shah tweeted.
“It shows the robustness of Dukaan to handle large-scale operations.” Shah tweeted.
Shopify is one of the investors in Flexport. The company partnered with Shopify earlier this year to give the latter’s merchants access to its freight services.
