Prove AI can't do the job before hiring: Shopify CEO
What's the story
Shopify CEO Tobi Lutke has announced a significant shift in the company's hiring policy, emphasizing the integration of AI into daily operations.
In a memo shared with employees and posted publicly, Lutke stated that before requesting additional headcount or resources, teams must first demonstrate why their work cannot be done using AI.
He described AI adoption as the most rapid transformation in his career and underscored the necessity for "reflexive AI usage" to become a baseline expectation for all employees.
AI integration
AI to be a factor in employee evaluations
Lutke also announced that AI usage will now be considered in performance reviews at Shopify.
The move is in line with the broader tech industry trend, where companies have invested hundreds of billions of dollars in AI development this year.
Despite the investments, many tech firms are also looking to cut costs by discontinuing unprofitable projects or laying off employees.
Cultural shift
AI's role in Shopify's future work culture
With this, Lutke has charted a new course for Shopify's work culture, emphasizing that AI will be at the heart of everything going forward.
He said using AI is no longer a suggestion but an expectation for all Shopify staff.
This change in mindset at the Canadian e-commerce giant mirrors Lutke's belief that AI is transforming how work is done faster than any other shift he's seen in his career.
AI implementation
AI tools introduced by Shopify
Shopify has already launched several AI tools for staff and merchants, including Sidekick, a chatbot that helps business owners, and a set of automation tools under the banner of "Shopify Magic."
Lutke views this new AI-first approach as not just necessary but an exciting opportunity.
He believes that "AI will totally change Shopify, our work, and the rest of our lives. We're all in on this!"
Workforce changes
Shopify's workforce reduction aligns with industry trends
In 2024, around 152,000 positions were cut across 549 tech companies, Layoffs.fyi reported.
Shopify's workforce shrank from 8,300 to 8,100 by the end of December last year.
The Canadian firm had already cut its workforce by 14% in 2022 and another 20% in 2023.