Shopify CEO tells teams to consider using AI before growing headcount

In a recent memo to employees, Shopify CEO Tobi Lütke made a bold policy change: teams must demonstrate why AI can’t perform a job before they’re permitted to ask for more headcount and resources.

“Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,” Lütke wrote in the memo, which he shared publicly on social media Monday. “What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects.” 

Advancing the notion that AI and so-called agents may help Shopify maintain a smaller workforce is sure to attract controversy, given widespread concerns about AI’s impact on jobs. A new report from the United Nations’ Trade and Development organization estimates that AI could disrupt over 40% of roles globally.  

However, Lütke isn’t the only CEO looking to AI for efficiency gains. Other leaders in the tech space have expressed similar sentiments.

Sebastian Siemiatkowski, the chief executive of Klarna, has boasted about how Klarna’s AI chatbot does the work of 700 customer service agents. He has also said that, thanks to AI, Klarna’s workforce could eventually be reduced to just 2,000 people. Klarna currently employs around 4,000.

As of 2024, Shopify had around 8,100 employees. The year prior, the company laid off 20% of its staff. In January, Shopify reportedly quietly laid off employees in its customer service division, according to Business Insider.