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Shopify Losses, Jobs, and Tech Recession: Business and Investing Stories You Need to Know This Week

Shopify’s logo hangs behind the Canadian flag after the company’s IPO on the New York Stock Exchange on May 21, 2015.Lucas Jackson/Reuters

Are you caught up in a runaway week? A weekly digest of the world’s most important business and investing stories, including professional insights and analysis, stock tips, and portfolio strategies.

No need to panic, but a recession could ‘technically’ come.”

The US economy unexpectedly contracted for the second quarter in a row, triggering signs of a technical recession, if not a full-blown recession. As Jason Kirby writes, Gross Domestic Product (GDP) fell by 0.9% on an annualized basis, while the overall US economy contracted by 1.3% in the first half of 2022. Two consecutive quarters of contracting economic output are often seen as an unofficial sign of a recession, but that’s not the official definition, and many economists believe it’s because unemployment is at a record low. , suggests that talk of a recession is premature.

Shopify cuts, losses, and measurements

Ottawa-based tech giant Shopify made headlines again this week after cutting 10% of its roughly 1,000 staff worldwide, writes Temur Durrani. Most of the jobs affected are in sales, accounting and recruiting, and the new job cuts follow a 50-person layoff in early July. Apologizing for overestimating and for Shopify hiring too many people to meet expected demand, “I got this wrong,” wrote in a memo to its 10,000 employees. A day later, Shopify posted a massive net loss of US$1.2 billion in the second quarter and warned of further operating losses as it faces a slowdown in e-commerce. Earlier this month, Shopify announced it was postponing a compensation review for employees unhappy with its falling stock price and canceling internships and job openings for employees starting in the fall.

Retail Unwinding: The E-Commerce Boom Ends

After all, we love going to malls. As pandemic restrictions are lifted, many are beginning to return to their old habits. Trying on clothes, testing mattresses, browsing shelves. I’ve also stopped shopping online, as Shopify’s layoffs show. As Matt Lundy writes, the Canadian said he spent about $3.5 billion on e-commerce orders in May. That’s a 23% drop (about $1 billion) for him from the previous year, when parts of the country were still in lockdown. It’s a similar story in the US, but I wouldn’t call it bankruptcy yet.

Should you stay (at your job) or go (for more money)?depends on who you ask

For more than a year, Canada’s record labor shortage has meant significant wage increases for those seeking a career change. But with a possible recession and some tech companies laying off staff, some workers are wondering if flying ships to get more money is a good idea. As Erica Alini reports, the latest data from Statistics Canada shows that employers were aggressively trying to fill more than one million vacancies in early May, up from the same number last year. That’s a 42.5% increase from March. Therefore, an employee who has seen signs of a recession but has not seen a pay rise in years and whose wages are well below inflation and market interest rates could see a significant increase in compensation by switching jobs now. high.

Rogers Outage Cause: Coding Error

Weeks after the widespread Rogers outage that disrupted wireless, cable and Internet services across the country, the telecom company finally figured out the cause. In documents released by the Radio, Television and Telecommunications Commission of Canada, Rogers said his error in coding occurred during an upgrade of the company’s wireless and broadband core infrastructure that supports his network. increase. As Alexandra Posadzki reports, the error triggered a series of events that were difficult to identify even for a company technician and took him a day for his team to restore the network.

Stressed about your large mortgage?this is what to do

We are in a period of mental adjustment regarding home ownership. It begins with the idea that a large mortgage is a noble burden because you own an asset that gains value rapidly. I am under financial stress. Falling house prices mean there is no moral victory for all this pain. So what should homeowners under pressure from rising mortgage costs do? Rob Carrick advises thinking in terms of $100s for financial avenues to save money. “We’re way over the latte here,” he wrote. Storm clouds are gathering over the Canadian real estate market, and things could get worse for renters.

You’re all set, so get ready for the next week with Globe’s investment calendar.

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