Shopify Workers Sound Alarm on Noteworthy Job Losses and AI Integration

Shopify employee has alleged The staff member exposed alarming actions and strategic moves taken by the company, unveiling that the e-commerce behemoth was indeed cutting jobs and opting for AI solutions. This revelation has sparked public concern.

A Twitter user by the name of Joe Momma mentioned that Tobi Lutke, Shopify's CEO, has been discreetly restructuring the global customer service base, with the US, Canada, and Ireland being particularly affected as they switch to AI alternatives.

They highlighted a timeline starting in early 2022 when Shopify reassured its workforce about job security, only for significant layoffs to occur by July of the same year.

The source of this information believes these layoffs stem from a conscious strategy rather than just a poor decision by leadership. They seem designed to replace full-time employees with cheaper contract workers while increasing dependence on AI technology.

"AI is becoming the backbone of everything at Shopify, from crafting product descriptions to creating virtual assistants, not to mention a new AI help center agent, which is still undergoing beta testing and hasn't launched yet.\"

the former employee wrote.

Furthermore, he echoed Lutke's sentiments on how technology has steadily reduced the number of employees required by companies over the years.

Notably, Tobi has been quite open about his intentions, even sharing a chart on Twitter that showcases how businesses have managed to operate with fewer workers to generate $1 million in revenue over time. https://t.co/WHc8tu3ufx

— Joe Momma (@sh0p1fyj03) July 19, 2023

The Twitter thread This topic has garnered significant attention online, sparking a variety of responses. While some have praised the individual for raising these concerns, others have criticized them for allegedly breaching their non-disclosure agreement. Shopify has yet to comment on these serious claims, but mounting pressure to respond seems inevitable.

Important: The Twitter account in question was established in July 2023, with posts solely focusing on Shopify. This level of anonymity inevitably leads to skepticism regarding the authenticity of the claims.

Companies are Replacing Staff with AI

Recently, the CEO of an Indian startup, Summit Shah, laid off a staggering 90% of the customer support team. He shared discussed this workforce reduction via Twitter, which led to a backlash from the public.

This decision followed the development of a chatbot, which Shah claimed could resolve customer queries far quicker than human staff.

In a tweet earlier this week, Shah mentioned that the chatbot, crafted by a team at his company, answers initial customer inquiries within just two days, while human employees took, on average, 1 minute and 44 seconds to do the same. data scientists In recent times, automation tools like chatbots and natural language processing software have been swiftly adopted by numerous firms,

as they aim to cut costs and boost profits, a trend that has unfortunately resulted in job losses. which have resulted in layoffs job roles that could potentially be automated through AI. The company's leader Arvind Krishna stated that up to 30% of their back-office positions might be replaced with AI technology over a five-year span, which could amount to approximately 7,800 positions disappearing.

Global tech company IBM  is pausing Meta Plans to Eliminate Thousands of Positions Amidst Dropping Ad Revenue and Shift Towards Metaverse

Read more:

• According to Layoffs.fyi, the tech sector is shedding about 2,600 jobs daily.
• More than 200,000 Positions Expected to Be Lost in the Tech Sector During 2023
• Top 15 Jobs That Can Be Replaced by AI in 2023
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