In late November 2025, Shopify confirmed another round of layoffs affecting what they called “a fraction of a per cent” of staff—approximately 80 people from a workforce of 8,100. The company said cuts “removed layers that created complexity without additional merchant value.”
But this isn’t new. Shopify has been making regular layoffs throughout 2024 and 2025:
- November 2025: Management roles in merchant success, operations, sales, and account executives
- September 2025: Restructuring and reorganization
- June 2025: Entire sales team fired following internal fraud investigation
- January-February 2025: Customer support roles eliminated, social impact teams disbanded
- Throughout 2024: Monthly or near-monthly small-batch layoffs
This follows major cuts in 2022 (10% of workforce) and 2023 (20% of workforce) when Shopify sold its logistics division.
Pattern of "Quiet Layoffs"
Former employees report that Shopify conducts layoffs regularly—often on the last Thursday or Friday of the month. Workers describe finding out colleagues were let go only when their Slack profiles turned grey and deactivated, with little to no explanation.
One source told The Logic: “I would check every single time to see if [my friends] were still with us.”
The constant threat of losing jobs has severely damaged morale across the company.
Who's Being Affected
Based on reports, Canadian employees most impacted include:
- Corporate and support roles (HR, operations, finance, recruiting)
- Sales and merchant success teams
- Product managers and program managers
- Customer support staff
- Social impact and equitable commerce teams
- Middle management across various departments
Shopify employs thousands of workers in Canada across Toronto, Ottawa, Waterloo, Montreal, Vancouver, and remote positions.
Your Rights as a Canadian Employee
Most Shopify employees are non-unionized, meaning your rights depend on provincial employment law and common law.
What You're Entitled To
Minimum Statutory Severance (Ontario ESA):
- 1-8 weeks termination pay based on years of service
- Severance pay if you’ve worked 5+ years and Shopify’s payroll exceeds $2.5 million (it does)
Common Law Severance (What You’re Actually Owed): Much more—typically 3-24 months of total compensation based on:
- Your age
- Length of service
- Position and salary level
- Availability of similar employment
Example: A 40-year-old senior manager with 8 years at Shopify earning $120,000/year could be entitled to 12-16 months’ severance under common law—not just the 8-10 weeks under ESA.
Don't Sign Anything Immediately
Shopify will offer you a severance package with a deadline to sign. Don’t sign without legal advice.
Reports indicate Shopify connects terminated employees with career transition services and offers severance agreements. Former employees describe these as “shady termination agreements” that don’t reflect full legal entitlements.
Red Flags to Watch For
- Short signing deadlines pressuring quick acceptance
- Severance amounts that only meet statutory minimums
- Missing information about benefits, stock options, or variable pay
- No explanation of how the severance was calculated
- Being told “this is the best we can do”
Calculate Your True Severance
Don’t accept the first offer. Shopify’s initial severance packages typically provide only ESA minimums—far less than common law entitlements.
Consider:
- Total years of service (including any prior Shopify acquisitions or mergers)
- Your age and position
- Stock options, RSUs, and variable compensation
- Benefits continuation
- Unused vacation pay
Employment lawyers regularly negotiate significantly higher severance for Shopify employees than what the company initially offers.
Special Considerations for Shopify Employees
Stock Options and RSUs
If you hold unvested Restricted Stock Units (RSUs) or stock options, find out:
- What happens to unvested equity upon termination
- Whether your severance includes accelerated vesting
- Tax implications of equity payouts
Variable Compensation
Many Shopify roles include bonuses, commissions, or performance-based pay. Your severance should account for:
- Prorated annual bonuses
- Outstanding commissions owed
- Average variable compensation earned over recent years
Benefits Continuation
Beyond base salary, severance packages should include:
- Extended health and dental benefits during notice period
- Life insurance and disability coverage
- Employer pension/RRSP contributions
The Sales Fraud Investigation
If you were part of the sales team and were terminated following the internal fraud investigation in mid-2025, consult a lawyer immediately. Being fired “for cause” related to alleged fraud requires the employer to prove serious misconduct—a high legal bar.
If Shopify cannot prove willful misconduct, you’re entitled to full severance even if you were labeled as terminated for cause.
What to Do Right Now
1. Don’t sign the severance offer – You lose negotiating power once you sign
2. Gather your documents:
- Employment contract
- Stock option/RSU agreements
- Performance reviews
- Total compensation statements
- Severance offer letter
Former Employees Share Their Experiences
Glassdoor reviews from 2022-2025 describe:
- “Mass layoffs and terminations on the regular”
- Terminations within weeks of joining without performance reviews
- “Shady termination agreements”
- Severe mental health impacts from sudden job loss
- Being connected to career transition services that reveal “many ex-Shopify employees” are being processed
One review stated: “Once you are terminated without cause, they will offer you the opportunity to sign a shady termination agreement with or without severance.”
Wrongful Dismissal Claims
You may have a wrongful dismissal claim if:
- Shopify’s severance offer is significantly below common law entitlements
- You were terminated shortly after joining (especially if recruited away from another job)
- The termination appears discriminatory or retaliatory
- You were labeled “for cause” without legitimate grounds
- Shopify misrepresented job security during recruitment
Toronto employment firm Samfiru Tumarkin has previously represented Shopify employees in severance disputes and has been contacted by employees affected by 2025 layoffs.
AI Mandate and Performance Reviews
Shopify made AI usage an expectation for all workers in 2025, embedding it into performance reviews and requiring employees to justify why they can’t use AI before requesting new hires or resources.
If you were terminated for performance reasons after the AI mandate, question whether the standards were reasonable and whether you were given fair opportunity to adapt.
Group Termination Rules
Under Ontario law, if Shopify terminates 50 or more employees at one location within a 4-week period, extended notice periods apply:
- 50-199 employees: 8 weeks’ notice
- 200-499 employees: 12 weeks’ notice
- 500+ employees: 16 weeks’ notice
If you were part of a larger group termination, you may be entitled to more than individual termination pay.
Three things every Shopify employee should know:
- Layoffs are ongoing and frequent – The pattern shows small, regular cuts across departments with little warning
- Initial severance offers are often too low – Shopify typically offers only statutory minimums; you’re likely entitled to much more under common law
- Don’t sign without legal advice – Employment lawyers regularly negotiate significantly better packages for Shopify employees
The “fraction of a percent” messaging downplays the impact on real people losing their jobs. If you’re affected, don’t accept less than you’re legally owed.
