February 26, 2024

A Shopify spokesperson confirmed that a company-wide pay overhaul it was planning to launch this month has been postponed.

The overhaul, which aims to give employees more flexibility regarding the balance of inventory and cash in the overall compensation package, was announced in April and was supposed to be rolled out in July.

“This is a huge task that must be designed with care and rigor [to meet various legal and regulatory requirements]A Shopify spokesperson told Insider on Wednesday. We’re still excited to roll out this new program as planned when it’s all ready in the fall. ”

The delay in the new compensation program comes amid reports that the Canadian e-commerce company has quietly laid off employees across various teams. The Globe and Mail reported that About 50 people have been laid off Since April, due in part to a pay mismatch created by the new compensation structure.

Shopify has denied laying off any employees due to the new pay approach. But the spokesperson did not respond to Insider questions about how many were affected or why they were laid off.

Some prospective employees who interviewed Shopify also said they experience significant delays with written offers, according to conversations on Blind, the anonymous messaging platform popular with tech workers. Some say they have been waiting weeks to receive a written offer of salary details after receiving an oral offer from Shopify recruiters.

Shopify did not respond to an Insider’s question about delays in offerings.

Shopify initially announced that it would overhaul its payment approach in April, following staff reaction. Shopify gives employees Restricted Stock Units, or RSUs, when they join the company, in addition to their base salary.

But with Shopify’s inventory dropping dramatically in the first half of this year, some employees have expressed concern about the overall value of their compensation packages. Others worry that a mass exodus of talent could occur if the company does not adjust its wage practices.

“Shopify has always been known to pay less, especially in base salary, but it will compensate to some extent with RSUs,” a current employee told Insider in March. “But that is no longer the case.”

Shopify has also put together a profile 10 for 1 split share It will end in June.

Shopify isn’t the only tech company carrying out layoffs as the global economy has faltered in recent months. According to Crunchbase Newswhich tracks tech layoffs, laid off more than 24,000 tech workers in the United States in 2022.

Canada’s tech landscape is also affected – Canadian fintech is darling Wealthsimple 159 people have recently been laid offor about 13% of its workforce.

Companies within the Shopify ecosystem are also tightening their belts. In June, PostScript, a startup that makes SMS marketing software for Shopify merchants, laid off 43 employees, and delivery company Swyft — which also counts Shopify as an investor — lay off about 30% of its employees.

Got a tip? Contact this reporter at mstone@insider.com or the encrypted messaging app Signal at (646) 889-2143 with a phone that is not working.

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