Shopify Layoffs: What Employees Should Know About Their Rights and Severance

Shopify logo on a smartphone, representing news of recent Shopify layoffs in Canada.

In late November 2025, Shopify confirmed another round of layoffs affecting what the company described as a “fraction of a per cent” of its workforce.

According to multiple reports, these reductions are part of an effort to streamline operations and remove layers that “created complexity without additional merchant value.” (Yahoo Finance, BetaKit, Winnipeg Free Press)

Shopify did not release a country-specific breakdown, but the company employs thousands of workers in Canada across Toronto, Ottawa, Waterloo, Montreal, Vancouver, and fully remote roles.

Given Shopify’s core operations remain Canada-based, Canadian employees may be directly affected. If you receive a layoff notice or severance offer, do not sign anything before obtaining legal advice.

What Shopify Announced

Public reporting indicates that the latest reductions are tied to ongoing restructuring efforts following earlier cuts in 2022 and 2023. Shopify stated that the layoffs focused on roles that added internal complexity “without additional merchant value.” (BetaKit)

Though described as a small cut globally, the changes follow other 2025 workforce adjustments—including reductions in customer support and the shutdown of several social-impact programs such as Build Black, Build Native, and EmPowered by Shopify. (Business Insider, FinTech.ca)

Key point: Even without a Canadian-specific breakdown, Canadian employees should not assume they are unaffected. If you have been laid off, ensure you understand your rights before signing a release.

Who May Be Affected in Canada?

Based on media reporting and Shopify’s restructuring patterns, the Canadian employees who may be affected include:

  • Corporate and support roles — HR, operations, sales, merchant success, finance, recruiting, and administrative functions.
  • Technology-adjacent roles — product managers, program managers, data analysts, and engineering-support roles tied to corporate operations.
  • Customer support and merchant experience — especially given the early-2025 customer-support layoffs.
  • Social-impact and equitable-commerce staff — affected by program shutdowns in early 2025.

Most Shopify employees in Canada are non-unionized, meaning their termination entitlements depend on provincial employment legislation and common law reasonable notice. Minimum statutory severance often represents only a small portion of what an employee is actually owed.

Earlier Shopify Layoffs

May 2023 – Major Workforce Reduction

On May 4, 2023, Shopify announced significant restructuring, cutting approximately 20% of its global workforce while selling its logistics division to Flexport. These cuts affected thousands of employees across engineering, product, recruiting, and operations.
(TechCrunch, Global News)

July 2022 – Layoff of Approximately 10% of Workforce

In July 2022, Shopify laid off roughly 10% of its staff, or about 1,000 employees worldwide, after the company acknowledged misjudging post-pandemic retail trends. (CBC News)

These cuts affected recruiting, support, engineering, and sales functions, marking the start of a multi-year shift in Shopify’s corporate structure.

January 2025 – Customer-Support Reductions

In January 2025, Shopify quietly eliminated at least a dozen customer-support roles. Affected employees reported losing system access shortly after brief HR meetings, consistent with a “quiet layoff” approach. (Business Insider)

Early 2025 – Shutdown of Social-Impact Programs

In early 2025, Shopify ended multiple social-impact initiatives, including programs supporting Black, Indigenous, and women entrepreneurs. Teams operating these programs were disbanded as part of broader corporate realignment. (FinTech.ca)

Why This History Matters for Canadian Employees

Shopify has undergone several rounds of restructuring across 2022, 2023, and 2025. Employees affected by repeated layoffs may receive severance packages that do not reflect full common-law entitlements, especially where compensation includes:

  • Equity or RSUs
  • Bonuses or commission structures
  • Benefits continuation
  • Termination clauses limiting severance

Wondering what you’re owed? Use our Severance Pay Calculator to estimate your potential entitlement based on your age, tenure, and role.

Your Rights if You’re Laid Off or Terminated

Employers often provide only the minimum termination or severance pay required by provincial employment standards legislation (for example, Ontario’s Employment Standards Act). These minimums vary by province but are typically far less than what employees may be entitled to under common law reasonable notice, which considers factors, including:

  • Length of service
  • Age
  • Position held
  • Availability of similar employment in your field

Employers often provide only the minimum statutory severance required by provincial employment standards legislation, such as Ontario’s Employment Standards Act. This may be far less than what employees are entitled to under common law reasonable notice.

Potential Issues with Shopify Layoff Notices

  • Insufficient notice periods — failing to provide adequate notice as required by provincial law.
  • Misclassified “temporary layoffs” — where there’s no genuine intent to recall employees.
  • Incomplete severance packages — omitting benefits continuation, bonus/commission treatment, or accrued vacation pay.
  • Pressure to sign quickly — deadlines that discourage employees from seeking legal advice.

Common Red Flags in Layoff Packages

  • Short turnaround times or “sign-by” dates.
  • Lump-sum offers that don’t show how amounts were calculated.
  • Missing details about benefits continuation or bonus/commission treatment.
  • “Temporary layoff” wording when no realistic recall is expected.

If you see any of these signs, pause and get professional advice from an employment lawyer before signing.

Wrongful Dismissal and Shopify Layoffs

In Ontario and across Canada, wrongful dismissal occurs when an employer ends employment without providing sufficient notice or pay in lieu as required by common law and provincial employment standards laws. You may have a claim where there is insufficient notice/severance, misclassification (for example, a “temporary layoff” that is effectively a termination), pressure to sign an unfair release, or discriminatory/retaliatory reasons.

Pursuing a wrongful dismissal claim may help you recover additional compensation beyond what was initially offered.

How Monkhouse Law Can Help

  • Free 30-minute phone consultation to review your severance offer.
  • Skilled negotiation to help you secure fair compensation, including benefits and variable pay.
  • Representation in wrongful dismissal claims where terminations are mishandled.

Contact Us for a Free Consultation

If you’ve been laid off or offered severance by Shopify in Canada, don’t sign anything before understanding your rights. Contact Monkhouse Law Employment Lawyers for a free 30 minute phone consultation to ensure your severance package reflects your full legal entitlement.