Etsy Marketplace — the internet’s favorite place to buy handmade goods and crafts — is on the verge of cutting 15 percent of its workforce, according to news reports out this morning. This is the eCommerce firm’s second big round of layoffs in two months.
According to a statement put out by the firm, 140 employees will be on the chopping block — combined with a different round of job cuts announced in May, 230 total positions have been eliminated. That is a bit under a quarter of Etsy’s total workforce at the beginning of 2016.
“In order to drive focus, we took decisive steps to double down on the fewest, highest-impact initiatives in our core marketplace while de-prioritizing other projects and streamlining our resources. Parting ways with our colleagues is not easy and I am thankful for their contributions. We are moving forward with a more nimble structure that supports our current business needs and allows for faster execution so we can better serve creative entrepreneurs around the world,” noted Etsy CEO Josh Silverman in a statement to media.
Silverman is new to the role — last month he ascended from Etsy’s board to replace Chad Dickerson. Silverman is a seasoned CEO — he has previously been the chief executive at Skype and Evite. Silverman moved up into the CEO position as the eCommerce firm has recently run into a bit of conflict with investor Black-and-White Capital LP. The group would like to see Etsy pursue other strategic alternatives including a possible sale.
Black-and-White also suggested that Etsy must fix search functionality and other features on its site in order to increase repeat customers and improve retail sales figures.
The layoffs are expected to incur about $6 million to $8.8 million in exits costs (things like employee severance packages). That will come on top of the $6.5 million to $8 million in exit costs Etsy netted due to its May layoffs.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More