18:45:51 EDT Sat 18 May 2024
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Shopify Inc
Symbol SHOP
Shares Issued 1,197,261,979
Close 2023-06-14 C$ 87.85
Market Cap C$ 105,179,464,855
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Post says fired Shopify employees unite in class action

2023-06-14 07:47 ET - In the News

The Financial Post reports in its Wednesday edition that like many other tech companies benefiting from people staying at home, Shopify saw its valuation skyrocket over the course of the pandemic. Post columnist Howard Levitt and Nadim Mansour write, however, that with conditions returning to a pre-COVID-19 state, Shopify found itself with too many employees. Laying off about 20 per cent of its work force, or 2,300 employees, is never popular, but that is not what led to the company's current predicament. Many of these employees say they were presented with termination agreements, offering hefty sums in exchange for those employees giving up the right to sue, as is usually the case in these circumstances. However, once the workers signed the termination agreements, Shopify allegedly reneged on the offers and informed the departing employees that they would instead be receiving substantially smaller sums than initially promised. The workers banded together and have sued for breach of contract in what has now developed into a $130-million class-action lawsuit. This very public rebuke serves as a stark reminder to employers everywhere: a deal is a deal, and it is imperative to honour legally binding agreements.

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