Uh-oh! Shopify Lays Off 10% Workforce. What's next? 📉
Scott D. Clary | Daily Business, Tech & Finance Newsletter
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Here’s what we’ve got today:
- Uh-oh! Shopify lays off 10% workforce
- Alphabet's second-quarter earnings miss estimates
- Core Scientific to host 75MW of ASIC servers
- B2B e-commerce payments provider secures $56M
Uh-oh! Shopify Lays Off 10% Workforce. What’s next? 📉
Shopify lays off 10% of its workforce.
What does this mean?
The move will affect about 1,000 employees in recruiting, support, and sales and across the company’s over-specialized and duplicate roles.
In a memo to employees, Shopify CEO Tobi Lutke acknowledged he had misjudged how long the pandemic-driven e-commerce boom would last, and amid a broader pullback in online spending, Shopify would move to cut several roles.
To those leaving Shopify
The impacted employees will get 16 weeks of severance pay plus one added week for every year the employee has been at the company.
The Canadian e-commerce company is also providing career coaching to help affected employees find another job.
What’s next for Shopify?
Shopify says it’s still early days for them and has a huge opportunity in years to come. The company will focus on building products to meet customer needs that will help the company succeed and come out stronger.
Alphabet Second 📉 Quarter Earnings Miss Estimates
Alphabet Inc.’s second-quarter revenue drops, and misses estimates.
The bad thing
- Revenue: $69.69 billion vs $69.9 billion expected
- Earnings per share (EPS): $1.21 vs. $1.28 expected
- YouTube advertising revenue: $7.34 billion vs. $7.52 billion expected
- Google Cloud revenue: $6.28 billion vs. $6.41 billion expected
The good thing
- Google’s Search and Other revenue were $40.69 billion, up from $35.85 billion the year before.
- Advertising revenue increased by 12% to $56.3 billion
- Revenue in Alphabet’s Other Bets segment, which includes some health-tech projects as well as self-driving car unit Waymo and the company’s venture arms, increased by $1 million from a year earlier to $193 million.
Any other exciting thing?
Alphabet’s headcount increased by 21% to 174,014 full-time employees from 144,056 the year before.
Alphabet Chief Executive Sundar Pichai’s response: “As we sharpen our focus, we’ll continue to invest responsibly in deep computer science for the long term.
Core Scientific to Host 75MW of ASIC Servers 💻
Interesting: Stocks are down. Crypto is down. But the Nasdaq-listed Bitcoin miner will increase ASIC server capacity by 75 MW
So we wanna know… how they will do it?
Core Scientific has signed a new colocation agreement to increase its data center hosting capacity by 75 megawatts (MW).
With this move, the company wants to showcase its ongoing commitment to boosting its infrastructure capabilities amid the ongoing bear market.
The agreement will generate roughly $50 million in annual revenue for the company when the ASIC servers are fully deployed.
Core Scientific CEO Mike Levitt said, “We remain focused on executing our 2022 plans to expand our capacity, support the Bitcoin Network’s continued growth and create value for all our stakeholders, despite current market challenges.”
Has the work started?
Server deployments will start in the third quarter of this year, with full deployment to be completed by the end of the year.
With the addition of these units, Core Scientific expects to be operating approximately 325,000 ASIC servers (combined self-mining and colocation) in its data centers before year-end.
B2B E-Commerce 💸 Payments Provider Secures $56 Million
Who got the money?
Balance Payments Inc. — a financial technology startup focused on the business-to-business market.
What do they do?
Balance is a digital payments platform designed to make the B2B online purchasing experience delightful for buyers and vendors alike.
With its platform, companies can process any payment method, offer flexible terms, and get paid instantly — all in one place.
Where did the money come from?
The funding was led by Forerunner Ventures along with participation from Salesforce Ventures, Hubspot Ventures, Lyra Ventures, and Gramercy Ventures.
A group of B2B e-commerce leaders as angel investors, including former Shopify CMO Jeff Wisener, Faire CTO & co-founder Marcelo Cortes, and existing investors Ribbit Capital, Lightspeed Ventures, Avid Ventures, Upwest, and Jibe, also participated in the round.
Where will the money go?
The company will use the capital to expand its offerings to new, global eCommerce platforms and enable B2B merchants to grow their digital revenue. Balance also plans on growing its headcount to about 100 by 2022.
You Should Probably Know What Else is Happening Around The World 🌎
Cryptojacking Surged in First Half of 2022
Global cryptojacking volumes increased by $66.7 million in the first half of 2022, or 30% compared to the same period last year, according to a mid-year update on cyber threats by US cybersecurity firm SonicWall.
What is cryptojacking?
Cryptojacking is a cybercrime whereby malicious actors take over a victim’s computer resources by infecting the machine with malware designed to mine cryptocurrencies.
That’s a wrap for today, ladies & gents. See ya tomorrow!
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