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SHOP - Shopify Inc News Story

C$1408.04 -38.6  -2.7%

Last Trade - 07/08/20

Sector
Technology
Size
Large Cap
Market Cap £96.91bn
Enterprise Value £93.84bn
Revenue £1.59bn
Position in Universe 1st / 2679

UPDATE 1-Canada's Shopify CEO says era of 'office centricity is over; most staff to permanently work from home

Thu 21st May, 2020 6:12pm
(Adds details, company value, context)
    May 21 (Reuters) - The CEO of Canadian e-commerce firm
Shopify Inc  SHOP.TO  declared on Thursday the end of "office
centricity" and decided to keep company offices closed till
2021, allowing most employees to work remotely on a permanent
basis after that.
    Ottawa-based Shopify, which briefly became Canada's most
valuable company earlier this month, had more than 5,000
employees and contractors worldwide as of December.
    "As of today, Shopify is a digital by default,” Tobi Lutke,
who is also the founder of Shopify, said in a tweet. "We will
keep our offices closed until 2021 so that we can rework them
for this new reality. 
    "Office centricity is over.”
    Shopify's move comes as businesses adjust to the impact of
COVID-19, which is also expected to reshape the future of office
spaces after the pandemic retreats.
    Shopify becomes the first major Canadian company to allow
staff to work from home permanently, even as many large
manufacturing companies, including Bombardier  BBDb.TO ,
gradually bring back some of their workers following reopening
plans announced by Canadian provinces.
    U.S. tech firms Square Inc  SQ.N  and Twitter Inc  TWTR.N 
also recently allowed employees to continue working from home
permanently.  urn:newsml:reuters.com:*:nL4N2CU3TX
    Facebook Inc  FB.O  and Alphabet Inc's  GOOGL.O  Google are
allowing most of their employees to work remotely until the end
of this year.
    Shopify, which has a market value of C$119 billion ($85
billion, is a seen by investors and analysts as a domestic
success story in an era where many large high-tech companies
have made their home in the United States' Silicon Valley.
    As COVID-19 pandemic shutdown large swaths of the Canadian
economy, more consumers have moved to online shopping,
increasing the appeal of companies like Shopify and making it
popular among investors. The stock has jumped about 117% this
year, compared with a 13% drop in the benchmark Canada stock
index  .GSPTSE .
    Its shares were up 4.2% at midday, while the benchmark index
was down 0.6%. 

 (Reporting by Ayanti Bera in Bengaluru, Denny Thomas in
Toronto; Editing by Saumyadeb Chakrabarty and Aurora Ellis)
 ((Ayanti.Bera@thomsonreuters.com; within U.S.+1 646 223 8780,
outside U.S. +91 80 6749 3401;))
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