Minor Layoffs as Shopify Shutters Social Impact Initiatives in Line with Broader Trend

A team roughly one dozen strong was laid off from Shopify in January in a move that appears to reflect broader social trends across North America.

Shopify shut down social impact programs earlier this year including its “Build Native, Build Black” initiative and “EmPowered by Shopify.” Build Black was part of “1 Million Black Businesses,” a collaboration between Shopify and non-profit Operation Hope that originated in 2020.

This decision from the Ottawa fintech to axe certain programs resulted in a minor wave of layoffs, sources informed The Logic.

The move from Shopify is not entirely out of the blue. Indeed, it parallels a wider trend that has seen corporate entities scale back their DEI and ESG advances since Donald Trump reclaimed his presidency.

For example, Google swiftly removed “Pride Month” from its Calendar. In Canada, most of the nation’s banks have abandoned the Net-Zero Banking Alliance.

Layoffs aside, Shopify remains the second largest publicly traded company in Canada behind the Royal Bank. The fintech this month reported earnings that saw nearly US$3B in quarterly revenue, up more than 30% year-over-year.

“2024 was a stand-out year for Shopify,” President Harley Finkelstein stated. “Heading into 2025, we are committed to making entrepreneurship more common and further establishing Shopify as the go-to commerce platform for businesses of all sizes.”

Shopify is doing fine financially, but still recently made unexpected headlines after celebrity Kanye West attempted to sell a swastika-adorned t-shirt through the company’s e-commerce platform.

A public statement from Shopify spokesperson Caty Gray declared that the “merchant did not engage in authentic commerce practices.”

More specifically, the move was “a stunt” and “not a good faith attempt to make money,” according to Shopify general counsel Jess Hertz.

That was violation of Shopify’s terms of service, she said, and created a risk of fraud.

Shopify’s connection to West dates back to 2016, when he first used the platform to sell his clothing and music.