Shopify CEO Requires Proof Jobs Can’t Be Done by AI Before Adding Headcount
Shopify is signaling a firm shift in how it views human resources in the age of AI. CEO Tobi Lutke informed staff in a company memo that they must demonstrate why tasks can’t be automated with AI before requesting additional hires or resources.
“There’s a fundamental expectation that employees are using AI in their day-to-day work,” Lutke said in the message, which he later shared on X. “What would this area look like if autonomous AI agents were already part of the team?”
The memo, originally sent to employees in late March, reflects the Canadian e-commerce platform’s evolving stance on workforce strategy. Lutke described AI as a powerful productivity enhancer, citing instances where employees used the technology to accomplish tasks that were previously considered unrealistic.
“I’ve seen many of these people approach implausible tasks… with reflexive and brilliant usage of AI to get 100X the work done,” he said.
AI Integration Now Tied to Performance Reviews
The company is now factoring AI usage into performance evaluations. According to Lutke, those who integrate AI tools effectively are outperforming their peers, highlighting a growing divide in productivity based on AI adoption.
Shopify has been actively developing and deploying AI tools for its merchant base. Offerings include Sidekick, a customer-facing chatbot, and a suite of automation tools marketed under the brand “Shopify Magic.” These tools aim to streamline online retail operations and enhance customer service experiences.
Broader Tech Trends Drive Policy Shift
Shopify’s approach mirrors a broader trend in the tech industry: massive AI investment paired with workforce cuts. In 2024 alone, over 152,000 roles have been cut across nearly 550 tech companies, according to Layoffs.fyi.
Shopify’s own workforce has steadily declined. The company’s headcount dropped to 8,100 at the end of 2023, down from 8,300 the previous year. Major layoffs occurred in both 2022 and 2023, where the company reduced its workforce by 14% and 20%, respectively.
Despite a flat headcount projection, Shopify CFO Jeff Hoffmeister recently told investors at a Morgan Stanley event that employee-related costs may fluctuate. “A higher comp, high-end AI engineer” could drive costs even if overall staffing levels remain steady, he noted.
