Shopify CEO tells teams to try AI before adding staff

Shopify CEO Tobi Lütke announced a new policy on Apr. 7, requiring teams to explain why AI cannot perform a role before requesting more staff or resources.

“Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI,” Lütke wrote in the memo, which he shared publicly on social media.

He encouraged teams to explore AI integration as an opportunity for innovation. This reflects a growing trend in the tech industry where AI is reshaping workforce structures.

The announcement comes amid global concerns about AI’s impact on jobs. A UN report estimates that over 40% of jobs worldwide could be affected.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Tech executives are rapidly restructuring workforces around AI capabilities

Shopify’s policy is part of a larger executive movement to prioritize AI over traditional headcount growth, reflecting significant shifts in workforce planning across the tech industry.

A World Economic Forum report shows that 41% of employers plan to downsize their workforce due to AI adoption, with this figure rising to 48% in the U.S. specifically 1.

The tech industry has already cut 22,692 jobs across 81 companies in early 2025, with many companies explicitly citing AI integration as a factor in these decisions 2.

This trend is demonstrated by companies like Meta, which cut 3,600 general positions while simultaneously increasing hiring for AI-specific roles, showing a strategic reallocation rather than simple cost-cutting 3.

Even as layoffs continue, technology executives report revenue benefits from AI adoption, with 51% of small and medium businesses reporting revenue increases from their AI initiatives 4.

Shopify’s approach aligns with this industry-wide reevaluation of human-machine work distribution, though it takes a more structured approach by requiring formal justification processes.

2️⃣ Companies face steep challenges in workforce transition rather than wholesale job elimination

While Shopify’s policy may raise job elimination concerns, research suggests the reality is more nuanced—AI is transforming roles rather than simply replacing them outright.

According to research, by 2030, approximately 70% of skills used in most jobs are expected to change, requiring significant adaptation from both employers and workers 4.