Shopify CEO says staffers need to prove jobs can’t be done by AI before asking for more headcount

Shopify CEO says staffers need to prove jobs can’t be done by AI before asking for more headcount


Tobias Lütke, CEO of Shopify, speaks at the Collision conference in Toronto, Canada, on May 22, 2019.

David Fitzgerald | Sportsfile | Getty Images

Shopify CEO Tobi Lutke is changing his company’s approach to hiring in the age of artificial intelligence.

Employees will be expected to prove why they “cannot get what they want done using AI” before asking for more headcount and resources, Lutke wrote in a memo to staffers that he posted to X on Monday.

“What would this area look like if autonomous AI agents were already part of the team?” Lutke wrote in the memo, which was sent to employees late last month. “This question can lead to really fun discussions and projects.”

Lutke also said there’s a “fundamental expectation” across Shopify that employees embrace AI in their daily work, saying it has been a “multiplier” of productivity for those who have used it.

“I’ve seen many of these people approach implausible tasks, ones we wouldn’t even have chosen to tackle before, with reflexive and brilliant usage of AI to get 100X the work done,” Lutke wrote.

The company, which sells web-based software that helps online retailers manage sales and run their operations, will factor AI usage into performance reviews, he added.

The directive comes as tech companies have collectively earmarked hundreds of billions of dollars for investing in AI development this year. Shopify has rolled out AI tools for its merchants, including a chatbot called Sidekick and a suite of automation tools, which it dubs “Shopify Magic.”

Just as they’re plowing money into AI, tech companies are looking to streamline costs in other areas, either by discontinuing money-losing projects or through layoffs. In 2024, there were roughly 152,000 roles eliminated across 549 tech companies, according to Layoffs.fyi.

Shopify’s total headcount fell to 8,100 at the end of December from 8,300 a year earlier, according to its latest annual filing. The Canadian company eliminated 14% of its workforce in 2022 and 20% the following year.

At an investor event last month hosted by Morgan Stanley, Shopify CFO Jeff Hoffmeister said the company can “keep headcount relatively flat,” though employee-related costs could vary due to salary differences. He noted that “a higher comp, high-end AI engineer” can lift compensation costs even if headcount is staying the same.

Don’t miss these insights from CNBC PRO

AI will continue to rally over the next two years, says Intelligent Alpha's Doug Clinton



Source

India’s IT layoffs spark fears that AI is hurting jobs in a sector critical to its economy
World

India’s IT layoffs spark fears that AI is hurting jobs in a sector critical to its economy

Avishek Das | Sopa Images | Lightrocket | Getty Images India’s IT sector is facing job cuts, and analysts are wary about what the impact of artificial intelligence might mean for an industry critical to the country’s broader economy. The country’s largest private sector employer, Tata Consultancy Services, which employs over half a million IT […]

Read More
European markets look set to start the week positively; oil prices in focus after OPEC+ output hike
World

European markets look set to start the week positively; oil prices in focus after OPEC+ output hike

What to keep an eye on today An electronic board displays exchange rate information at a currency exchange bureau in Istanbul, Turkey, on Aug. 29, 2022. Nicole Tung | Bloomberg | Getty Images The second-quarter earnings season is starting to ease, with no major corporate reports Monday. On the data front, traders will be keeping […]

Read More
China’s BYD breaks delivery growth streak as EV price war reshapes competition
World

China’s BYD breaks delivery growth streak as EV price war reshapes competition

Despite a July slowdown, BYD retains its lead in China’s competitive EV market. Anna Barclay | Getty Images News | Getty Images China’s largest EV maker BYD posted its first monthly delivery decline this year, amid stiff competition from a price war that has attracted attention from policymakers in Beijing. While other major Chinese electric […]

Read More