tl;dr
In an effort to contain labor costs and increase productivity, Shopify (NYSE:SHOP) is taking an “unconventional approach” to raises by making its 8,300 employees compete against each other to qualify for more pay. According to The Information, Shopify (SHOP) assigns employees a numerical score to re...
In an effort to contain labor costs and increase productivity, Shopify (NYSE:SHOP) is taking an “unconventional approach” to raises by making its 8,300 employees compete against each other to qualify for more pay. According to The Information, Shopify (SHOP) assigns employees a numerical score to represent their skill level. Scores can only increase if their skill level improves faster than colleagues, and only employees whose scores increase within a certain time frame are eligible for a raise. Or more bluntly, employees who improve faster than co-workers will earn more money, leaving the rest behind. Like other tech companies, Shopify (SHOP) over-hired during the pandemic -- more than doubling its workforce between 2019 and 2022 -- and then cutting 30% of jobs in 2023. With a leaner workforce, the company continues to take steps to cut down on redundancy and waste by eliminating recurring meetings, cutting back on “unwieldy” Slack chats, and thinning out the layers of bureaucracy, The Information said. The campaign to improve efficiency seems to be paying off for Shopify (SHOP). Last quarter, the company increased revenue by 24% year-over-year, and raised gross merchandise volume by 23%. Subscription Solutions revenue was 31% higher than a year ago, and monthly recurring revenue rose 35% from the same quarter last year. And although the stock has been under pressure recently (down 18% in the past month) shares are up 41% year-over-year versus 22% for the S&P 500.
More about Shopify Inc
Shopify Inc Summary Shopify Inc Summary
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
Sector: TECHNOLOGY
Industry: SERVICES-PREPACKAGED SOFTWARE
Market Cap: $90.103 billion
PE Ratio (TTM): 700
Dividend Yield: None
Beta (5Y Monthly): 0.1
52-Week Change: 5.51%
52-Week High: $706.00
52-Week Low: $82.55
50-Day Moving Average: $4.858
200-Day Moving Average: $0.236
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