Shopify Severance Package: 2026 Guide
16 weeks minimum + 1 week per year of service. Calculate your estimated Shopify severance below.
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What Shopify Typically Offers
Known Severance Benefits
- ✓16 weeks minimum severance
- ✓1 additional week per year of service
- ✓Extended health benefits
- ✓Career coaching and transition support
- ✓Laptop ownership
Shopify Recent Layoff History
| Date | Employees | Details |
|---|---|---|
| July 2022 | 1,000 | 16 weeks severance + extended benefits |
| May 2023 | 2,300 | 16 weeks + 1 week/year + benefits continuation + career coaching |
Sources: TechCrunch, BetaKit, Bloomberg
Shopify Severance Tax (District of Columbia)
Shopify is headquartered in District of Columbia. Here's how severance is taxed there:
Example: A Shopify employee with 5 years of service earning $150,000 would receive approximately $43,269 gross ( $29,099 after tax in District of Columbia).
How Shopify Compares to Technology Average
Other Technology Companies
| Company | Formula | Rating |
|---|---|---|
| Meta (Facebook) | 16 weeks base + 2 weeks per year of service | Generous |
| Google (Alphabet) | 16 weeks base + 2 weeks per year of service + bonus | Generous |
| Amazon | Varies widely: corporate gets more than warehouse; typically 1-2 weeks per year | Standard |
| Microsoft | 2+ months base pay plus additional weeks per year of service | Generous |
| Apple | 4-12 weeks depending on role and tenure | Standard |
| Netflix | 4-9 months of pay (one of the most generous in tech) | Generous |
| Salesforce | Minimum 5 months pay plus career resources | Generous |
| X (Twitter) | 3 months base pay (post-acquisition standard) | Below Average |
Negotiating Your Shopify Severance
Strategies specific to Shopify employees:
- ✓Shopify's 16-week minimum is strong — focus on additional tenure-based weeks
- ✓Push for extended Shopify partner program access
- ✓Negotiate for continued learning and development stipend
- ✓Ask for a recommendation letter from your Shopify lead
Think Your Severance Is Too Low?
Employment lawyers have helped workers negotiate 2-5x their original offers. Get a free consultation.
Shopify Severance FAQ
How much severance does Shopify pay?▼
Shopify typically offers 16 weeks minimum + 1 week per year of service. Their severance reputation is rated as “Generous” compared to technology industry peers. In recent layoffs (July 2022), 16 weeks severance + extended benefits.
Can I negotiate my Shopify severance?▼
Yes, most severance packages at Shopify are negotiable. An employment lawyer experienced in technology can typically negotiate 2-5x the initial offer, especially if there are potential legal claims or WARN Act violations. Many offer free initial consultations.
How is Shopify severance taxed?▼
Shopify severance is taxed as supplemental wages at 22% federal flat rate plus 10.8% District of Columbia state tax, for a total of approximately 32.8%. If you work remotely, your state of residence tax rate applies instead.
Related Technology Companies
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The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.