Shopify CEO's New Hiring Rule: 'Want More Manpower? Prove AI Can't Do It First'

The future of work at Shopify—and across much of the tech sector—is now being dictated by one question: can artificial intelligence do it better? In a striking internal memo, Shopify CEO Tobi Lütke revealed that staff must now justify why AI can't perform a task before seeking more hires or resources. In other words, employees must prove their irreplaceability.

This declaration, posted on X, has reignited debates around automation, job security, and the value of traditional coding skills in an increasingly AI-driven economy. While businesses eye soaring efficiency, many workers are left wondering whether they can—or should—compete with machines.

AI No Longer Optional at Shopify

Lütke's message was unequivocal: AI is no longer just a helpful tool—it's the bedrock of how Shopify operates. Performance reviews will now factor in how effectively employees utilise AI tools. Those who have already integrated AI into their daily tasks, he noted, are achieving astonishing productivity gains.

'I've seen many of these people approach implausible tasks—ones we wouldn't even have chosen to tackle before—with reflexive and brilliant usage of AI to get 100X the work done,' Lütke wrote.

Shopify has already launched proprietary tools to support this shift, including 'Shopify Magic'—a suite of AI-powered automation features—and 'Sidekick', a chatbot assistant. However, Lütke did not specify which AI models employees are expected to use, although chat.Shopify.io and AI coding platforms were mentioned.

This marks a pivotal moment in Shopify's ongoing transformation. The company has been steadily investing in AI innovation while simultaneously reducing human headcount—a trend now becoming standard across the tech sector.

The Layoff Era and the AI Surge

Shopify's shift comes amid a wider wave of job cuts and corporate restructuring across tech. Since 2022, the company has slashed 34% of its workforce—14% in 2022 and a further 20% in 2023. According to CFO Jeff Hoffmeister, the goal is to keep headcount 'relatively flat' moving forward.

Even this stability comes at a cost. While overall employee numbers are expected to remain low, the average salary may rise as 'higher comp, high-end' AI engineers are brought in to replace lower-level roles.

Shopify is not alone. As reported by Layoffs.fyi, more than 152,000 jobs were axed across 549 tech firms in 2024. In just the first quarter of 2025, a further 27,000 workers have been let go, led by Northvolt's 2,800 redundancies.

Tech titans are also shifting their strategies. Salesforce CEO Marc Benioff has vowed not to hire engineers in 2025 due to the rapid rise in AI capabilities. Google now generates over 25% of its new code via AI, and Meta's Mark Zuckerberg has floated the idea that AI could soon replace most mid-level developers.

Meanwhile, job stability is evaporating. In 2024, 18% of tech workers reported receiving pay cuts, up from just 11% in 2019. Even those who survive layoffs are not immune to declining compensation and shrinking opportunities.

The Death of the Guaranteed Coding Job?

Once considered the golden ticket to financial stability, careers in STEM—particularly computer science—are facing a sharp downturn. In the US, the number of computer science graduates tripled between 2009 and 2022. In the UK, university applications for computing rose 16% between 2021 and 2022, reaching nearly 180,000.

Yet, the bubble is bursting. Oversaturation and AI automation are now making entry-level roles increasingly scarce. Many recent graduates are finding their skills redundant before their careers even begin.

A Shift Towards Creativity and Craft

In a fascinating turn, many veteran tech workers are now advising younger generations to look beyond coding and embrace creativity, individuality, and practical trades. As The Wall Street Journal notes, parents who once championed engineering degrees are now steering their children toward the arts.

This trend is already visible in education systems. In Massachusetts, vocational school enrolment has soared by 30% over the past decade, with one in five high school students now participating. Courses in culinary arts, carpentry, and electrical work—fields still resistant to automation—are surging in popularity.

The message is clear: soft skills, creativity, and hands-on expertise may be the safest career bets in a world where AI can write code, optimise logistics, and even diagnose illnesses.

A New World of Work

As AI reshapes the tech landscape, Tobi Lütke's policy at Shopify may soon become the norm across many industries. His stance is both a warning and a challenge: embrace AI—or risk obsolescence.

While the news may be unsettling for some, it also opens new doors. The rise of AI may mark the decline of traditional tech roles, but it is also elevating the value of human intuition, adaptability, and emotional intelligence. For future jobseekers, the lesson is not to fear AI, but to learn how to work alongside it—and most importantly, to find the roles that only a human can truly do.