Shopify losses, job openings and a technical recession: The business and investing stories you need to know this week

Shopify’s logo hangs behind the Canadian flag following the company’s IPO on the New York Stock Exchange on May 21, 2015.Lucas Jackson/Reuters

Being overtaken by a week that got away? Here’s your weekly roundup of the Globe’s most essential business and investing stories, with insights and analysis from the pros, stock tips, portfolio strategies and more.

Don’t panic, but a recession could “technically” happen

The US economy unexpectedly contracted for the second consecutive quarter, triggering signs of a technical recession, if not an outright recession. As Jason Kirby writes, gross domestic product (GDP) fell at an annualized rate of 0.9%, bringing the total contraction of the US economy in the first half of 2022 to 1.3%. While two consecutive quarters of declining economic output is often taken as an informal sign of recession, it is not an official definition, and many economists suggest talk of a recession is premature due to record levels of unemployment.

Shopify cuts, losses and mea culpa

Ottawa-based tech giant Shopify made headlines again this week after cutting 10% of its staff, or about 1,000 people worldwide, writes Temur Durrani. Most of the jobs affected were in sales, accounting and recruitment, and this new round of layoffs follows the loss of 50 jobs in early July. CEO Tobias Lutke apologized for overestimating e-commerce growth, which led Shopify to hire too many people to meet expected demand, writing “I was wrong” in a 10,000 note. employees. A day later, Shopify posted a massive $1.2 billion net loss in the second quarter and warned of more operating losses to come as it faces a slowdown in e-commerce. Earlier this month, Shopify announced it was delaying compensation reviews for employees unhappy with falling stock prices and canceling internships and job postings for people who were due to start working at the fall.

Retail rewind: The e-commerce boom is running out of steam

Turns out we love going to the mall after all. As pandemic restrictions have been lifted, many people are going back to old ways — trying on clothes, testing mattresses, browsing shelves — and, as Shopify’s layoffs seem to show, are giving up shopping online. As Matt Lundy writes, Canadians spent about $3.5 billion on e-commerce orders in May, down 23% (or about $1 billion) from a year earlier, when some parties of the country were still blocked. It’s a similar story in the US, but don’t call it a bust just yet.

Should you stay (at your job) or should you leave (for more money)? It depends who you ask

For more than a year, Canada’s record labor shortage has resulted in significant wage increases for those willing to change jobs. But with a possible recession on the horizon and some tech companies downsizing, some workers are starting to wonder if jumping ship to make more money is a good idea. As Erica Alini reports, the latest data from Statistics Canada shows that employers were actively seeking to fill more than one million job vacancies at the start of May, up 42.5% from the same month last year. last. So while there are signs of a slowdown, employees who haven’t seen a raise in years and whose wages have fallen well below inflation and market rates are still likely significantly increase their earnings by changing jobs now.

The culprit of the Rogers outage: a coding error

Weeks after a widespread Rogers outage interrupted wireless, cable and internet services across the country, the telecommunications company finally determined the cause. In documents publicly released by the Canadian Radio-television and Telecommunications Commission, Rogers said a coding error was introduced during an upgrade to the backbone infrastructure that supports wireless networks and business broadband. As Alexandra Posadzki reports, the error set off a cascade of events that even the company’s technicians struggled to identify, and took the team all day to restore the network.

Stressed out by your huge mortgage? Here’s what to do

We are now in a period of mental adjustments to homeownership, starting with the idea that a big mortgage is a noble burden because you own a property that is rapidly increasing in value. Combined with a higher cost of living and rising debt repayments, young homeowners face the most financial stress today – and falling house prices mean there’s no no moral victory for all this pain. So what should homeowners do under the pressure of rising mortgage costs? Rob Carrick advises thinking in $100 increments in terms of the financial steps you take to save money. “We are way beyond lattes here,” he wrote. Storm clouds are brewing in the Canadian real estate market – and the situation is likely to get worse for borrowers.

Now that you’re all caught up, get ready for the week ahead with The Globe’s investment calendar.

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