What: The e-commerce platform reported USD 1.5 billion in revenue for the first quarter and announced that it would be selling the majority of its logistics business, resulting in 20% of its staff being laid off.

Why it is important: The company saw its revenue increase 25% compared to last year and is looking towards AI to help its customers.

In addition to an increase in revenue, Shopify reported USD 717 million in gross profit and an operating loss of USD 193 million, with the operating loss representing 13% of revenue, up from 8% of revenue last year.

In a public memo, Shopify said it had spent the last year focusing on its primary mission of making the best possible e-commerce product that is easier to use, more participatory, and more common.

The company is selling the majority of its logistics business to Flexport who will become their partner and preferred provider. Additionally, Shopify will receive stock representing 13% equity interest in addition to its existing equity interest. As a result of the deal, around 2,300 employees will be laid off.

Shopify is now looking to AI and the the new capabilities it can unlock to better help its customers. In the last quarter, the e-commerce platform launched a new AI assistant on its shopping app and also launched Pinterest as an advertising channel for Shopify Audiences.

Shopify reports USD 1.5 billion in revenue, lays off 20% of workforce