Shopify CEO: 'Teams Must Justify Headcount vs AI Alternatives'

Shopify CEO Tobi Lütke has instituted a new policy requiring teams to demonstrate why a task can't be done by AI before requesting additional headcount. The policy, revealed in a leaked internal memo, represents one of the most explicit "AI-first" hiring frameworks in the industry.

"Before asking for more people, you need to show what you've tried with AI," the memo reads. "If AI can do 80% of the job, maybe you need a different job, not more people."

Shopify has cut 600 positions, primarily in frontend development and full-stack engineering roles. The company is simultaneously investing heavily in AI tooling, including custom fine-tuned models for Shopify-specific development tasks.

Employees describe an environment where automation is both celebrated and feared. "There's real pressure to be the person who automates things, not the person who gets automated," one engineer said.

What this means for you: Shopify is saying the quiet part loud. Every company is thinking about AI vs. headcount — Shopify just made it official policy. If you want job security, be the person who implements AI solutions, not the person whose job could be replaced by one.