Roughly 20% of e-commerce platform Shopify’s team has been dropped from the company with the sale of its logistics business to supply chain manager Flexport.

“For the past year, we’ve been subtracting everything that’s in the way of making the best possible product,” Shopify Chief Executive Tobi Lutke said in a note to staff this morning. “This is extremely important, because we are heading into a decade of high velocity and massive change.”

For example, as AI advances, “Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers. … Our main quest demands from us to build the best thing that is now possible, and that has just changed entirely [in the AI era],” Lutke said.

Affected employees, who will be notified today, will receive 16 weeks of severance pay and a week of pay for every year of tenure at the company, Lutke said, noting, “We’ll also offer outplacement services if you want them.”

Through the transaction, Shopify will gain a 13% stake in Flexport, Dave Clark, chief executive of Flexport, said today in Shopify’s Q1 2023 earnings release.

The sale to Flexport and layoffs follow the platform’s July 2022 cuts when Shopify eliminated 1,000 jobs from its staff of 10,000.

Shopify is the latest tech company to facilitate layoffs. The following have also recently cut teams:

• Amazon;
• Apple;
• Docusign;
• FIS; and
• Microsoft.