"There's no cuts coming for us,"
"We're in a really good place."
His confidence that the company's reductions are done comes months after Shopify was among the first of the world's tech giants to lay off staff in a summer cut that impacted 1,000 workers — roughly 10 per cent of staff. The company attributed the move to it misjudging the growth of the e-commerce sector.
Since then, few major tech companies have been unscathed by the fading investor exuberance, falling valuations and pressure to reach profitability in the event a predicted recession materializes.
Tech giants as big as
After Shopify's cuts, Finkelstein feels the company is at the right size.
"I don't think we are going to grow our head count very much," he said.
"I think we can keep it pretty flat other than maybe a couple of key hires."
Asked what areas might garner hires, he said software and product staff are always in demand because there are fewer of them.
But retaining current staff is just as important. To keep workers, Shopify is leaning on Flex Comp, an initiative which gives staff a “total rewards wallet” and allows them to regularly choose between cash and stock options for their compensation.
It was implemented in the wake of Shopify's layoff and as its stock came under pressure, falling from a 52-week high of
In designing the program, Shopify completed an extensive benchmarking exercise to ensure salaries are competitive, but executives warned Flex Comp will likely weigh on its 2023 outlook.
Historically, allocations staff made sat at around 70 per cent cash and 30 per cent equity, Finkelstein said.
"I think Q4 allocations may be skewed slightly more cash than those levels, but it's sort of expected that it will vary each quarter," he said.
"Cash gives certainty, but if you understand the business, obviously, you know, equity is what a lot of people want because they want to be able to participate in the upside there as well."
The company is also hoping to remain attractive to talent with a "digital by default" focus it adopted in 2020 after chief executive Tobi Lütke declared "office centricity is over."
Since then, most staff have worked remotely and Shopify opted not to move into The Well complex at
"We don't need that much space given the new digital by design," Finkelstein said.
Now, staff feel like they can move wherever and whenever they want (Finkelstein is in the process of shifting his family to
For those that want to head into an office, Shopify is maintaining some sites, including one at the King Portland Centre, not far from The Well. Many people gathered at the company's properties in recent weeks when it held a series of summits and hack days. Others joined virtually or invited colleagues living nearby over to their homes.
"They hosted like watch parties... so I actually think it is working really well for us," Finkelstein said.
He credits that flexibility with helping the company appeal to new, prized hires like
Around the same time as Hoffmeister joined Shopify, chief technology officer
Rather than replace Leinwand, Lütke is now overseeing research and development. He previously stepped in to take over chief product officer
The latest move isn't as big as it may seem to outsiders, Finkelstein said.
"He's been doing this for a long time and now we're just sort of documenting it officially."
This report by The Canadian Press was first published
Companies in this story: (TSX:SHOP)
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