They had bet on more growth than there turned out to be for now, and recently ended up laying off 10% of their employees.
This is the July 26 letter from founder and CEO Tobi Lütke to everyone working at Shopify:
“What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point. Still growing steadily, but it wasn’t a meaningful 5-year leap ahead. Our market share in ecommerce is a lot higher than it is in retail, so this matters. Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that.”