Shopify CEO says staffers need to prove jobs can't be done by AI before asking for more headcount

Core Insights - Shopify CEO Tobi Lutke is shifting the company's hiring strategy to emphasize the use of artificial intelligence (AI), requiring employees to justify the need for additional resources if they cannot accomplish tasks using AI [1][2] - There is an expectation for employees to integrate AI into their daily work, which Lutke describes as a "multiplier" of productivity [2][3] - AI usage will be incorporated into employee performance reviews, reflecting its importance in the company's operational strategy [3] Company Strategy - Shopify has introduced AI tools for its merchants, including a chatbot named Sidekick and a suite of automation tools branded as "Shopify Magic" [4] - The company has seen a reduction in total headcount, dropping from 8,300 to 8,100 over the past year, with significant workforce reductions of 14% in 2022 and 20% in 2023 [5] - CFO Jeff Hoffmeister indicated that while headcount may remain stable, employee-related costs could fluctuate due to varying salaries, particularly for high-end AI engineers [6] Industry Context - The tech industry is investing heavily in AI development, with hundreds of billions of dollars allocated this year, while also seeking to cut costs through project discontinuation and layoffs [4] - In 2024, approximately 152,000 roles were eliminated across 549 tech companies, highlighting a trend of workforce reduction amid increased AI investment [4]