Shopify CEO: No New Hires Without Proving AI Can’t Do the Job

Shopify CEO Tobi Lütke is urging employees to fully embrace artificial intelligence before requesting more staff or resources.

In a recent internal memo Lütke made it clear that AI should be the first solution explored when tackling new tasks.

I heard this internal memo of mine is being leaked right now, so here it is: pic.twitter.com/Qn12DY7TFF

— tobi lutke (@tobi) April 7, 2025

“Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,” he wrote. He posed a thought-provoking question to his staff: “What would this area look like if autonomous AI agents were already part of the team?”

According to Lütke, using AI effectively is now “a fundamental expectation of everyone at Shopify.” He emphasized that employees who lean into AI tools have been able to accomplish significantly more. “I’ve seen many of these people approach implausible tasks… with reflexive and brilliant usage of AI to get 100X the work done,” he added.

AI performance will now be part of performance and peer reviews, he said. Shopify, known for helping online sellers run their businesses, has already launched AI tools like its chatbot Sidekick and its automation system, Shopify Magic.

The directive comes as the tech industry continues to invest heavily in AI while simultaneously cutting jobs. According to Layoffs.fyi, more than 152,000 tech jobs were eliminated across 549 companies in 2024 alone. Shopify’s own headcount dropped to 8,100 by the end of last year, from 8,300 a year earlier, as reported by CNBC.

Despite the pressure to keep staffing flat, Shopify CFO Jeff Hoffmeister recently said the company may spend more on salaries, particularly for top AI talent. “A higher comp, high-end AI engineer” can drive up costs even if the team size stays the same, he explained as reported by CNBC.