named Jeff Hoffmeister, an investment banker, as its next chief financial officer, a move that comes after the e-commerce company announced in July that it would cut its workforce by 10%.
The Canadian company, which helps companies set up e-commerce websites, said the change in chief financial officer is expected to take effect on October 27 after announcing its third-quarter results. Current CFO Amy Shapero is stepping down, Shopify said.
Mr. Hoffmeister worked at Morgan Stanley for more than two decades, including as managing director of the technology investment banking group. During his tenure at the New York-based finance company, he led Shopify’s IPO in 2015. Mr. Hoffmeister was unavailable for an interview on Thursday, a spokeswoman for the company said. society.
He takes on the role of chief financial officer as Shopify, like other tech companies, downsizes and adapts to rapid changes in customer spending habits. The company said two months ago it was cutting staff numbers as it faced a broader slowdown in e-commerce growth, which is expected to continue to pick up after the online shopping boom at the start of the pandemic. Shopify had more than 10,000 employees at the end of 2021, according to its latest annual report.
Shopify posted a loss of $1.2 billion in the second quarter, compared to a profit of $876 million a year earlier, and warned that it would post losses for the rest of 2022. Total revenue , which has risen at the slowest pace since its IPO, rose 16% to $1.3 billion. Operating costs jumped 75% to $845 million as the company accelerated spending in areas such as marketing and product development.
By bringing in an investment banker as chief financial officer, the company is signaling to investors that it’s in growth mode rather than cost-cutting mode, said Tom Forte, equity analyst at DA Davidson Cos., a financial company. Mr. Hoffmeister’s experience could help the company focus on acquisitions, Mr. Forte said. In May, Shopify agreed to acquire Deliverr Inc., an e-commerce fulfillment company, for $2.1 billion in cash and stock.
“I don’t think you’re bringing in someone with 20 years of investment banking experience to control costs,” Forte said.
Ms. Shapero has served as the company’s chief financial officer since April 2018. Prior to joining Shopify, she was chief financial officer of Betterment LLC, an online wealth management service.
“As we position Shopify for the future, the addition of Jeff to our leadership team will continue to strengthen our ability to deliver value to our merchants, partners and investors,” said Tobi Lütke, chief executive of the company. , in a press release.
On Thursday, Shopify also said it promoted Kaz Nejatian, its vice president of product, to take on the additional role of chief operating officer. Mr. Nejatian succeeds Toby Shannan, who is retiring, and is expected to join the company’s board of directors effective January 1.
Write to Kristin Broughton at [email protected]
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Appeared in the September 9, 2022 print edition as “Shopify Taps Banker as New CFO”.