Shopify (SHOP) , which helps online retailers sell products and manage operations, has made significant changes in its workplace in recent years, especially after a startling discovery.
Since 2022, the company has deployed a series of quiet layoffs in its customer service department; the latest round reportedly took place in January of this year.
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By 2023, Shopify launched its “Code Yellow” initiative after its executives claimed customer service levels “deteriorated beyond acceptable ranges.”
Related: Starbucks CEO has a tough message for employees after layoffs
The initiative involves Shopify increasing the use of artificial intelligence to assist its Support employees in completing tasks. Now, it appears that Shopify has significantly warmed up to using AI in the company’s workplace.
Employees eat in a common area at the Shopify Inc. office in Waterloo, Ontario, Canada, on Thursday, Sept. 13, 2018.Â
Image source: Bloomberg/Getty Images
Shopify CEO sends employees a tough message
Shopify CEO Tobi Lutke recently sent a memo to employees informing them that implementing AI in their workflow is now a “fundamental expectation” of everyone at the company and refusing to use it can result in failure.
“I don’t think it’s feasible to opt out of learning the skill of applying Al in your craft; you are welcome to try, but I want to be honest. I cannot see this working out today, and definitely not tomorrow,” said Lutke. “Stagnation is almost certain, and stagnation is slow-motion failure. If you’re not climbing, you’re sliding.”
Lutke emphasized that using AI is the “most rapid shift to how work is done” as it can “augment our skills, crafts, and fill in our gaps.” He also said that using the technology is a skill that needs to be “carefully learned” by “using it a lot.”
Related: Snapchat CEO teaches new employees a strict lesson
“In a company growing 20-40% year over year, you must improve by at least that every year just to re-qualify,” said Lutke. “This goes for me as well as everyone else. This sounds daunting, but given the nature of the tools, this doesn’t even sound terribly ambitious to me anymore.”
The CEO also informed employees that before they request more headcount and resources, they will need to prove that their jobs can’t be completed using AI.
“Before asking for more Headcount and resources, teams must demonstrate why they cannot get what they want done using Al,” said Lutke. “What would this area look like if autonomous Al agents were already part of the team? This question can lead to really fun discussions and projects.”
Shopify joins a growing trend that is making workers nervous
The move from Shopify comes as its competitors Meta, Google, Amazon, and Microsoft are reportedly planning to invest a combined $320 billion in expanding AI this year. This is higher than the $246 billion they reported in total capital expenditures in 2024.
More Labor:
Amazon CEO gives employees a harsh wake-up callStarbucks CEO has a tough message for employees after layoffsSnapchat CEO teaches new employees a strict lesson
According to a report for Goldman Sachs, AI could replace about 300 million full-time jobs in the U.S. and Europe by 2030.
As the tech industry increasingly bets on AI, many employees across the country are anxious about the impact the technology could have on their jobs.
According to a recent survey from YouGov, more than one-third of U.S. workers are concerned that AI will result in job loss or cut work hours. Also, 56% of workers responding to the survey believe AI will shrink the number of job opportunities, and 55% think their work hours will be reduced due to the technology.
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