Etsy: Online Marketplace Lays Off 11% Of Staff To Cut Costs

Etsy is laying off 225 workers, or 11% of its workforce, as part of a cost-cutting strategy.

Several executives, including the online marketplace’s chief marketing officer, will leave as part of the transition.

Chief executive Josh Silverman informed employees that the changes were necessary since sales had been “essentially flat” for two years.

He acknowledged the “unfortunate” timing of the layoffs during the holiday season but added that those laid off will be paid until at least January 2nd.

The layoffs are part of a drive to make Etsy a “more focused, agile company,” according to Mr Silverman’s blog post on the company’s website.

Online Marketplace Lays Off 11% Of Staff To Cut Costs

According to an investor announcement, the layoffs will cost the company up to $30 million (£23.7 million) in severance payments, employee benefits, and related costs.

After the layoffs, slated to be completed in the first three months of next year, Etsy’s core marketplace team will employ approximately 1,770 individuals.

Independent vendors can set up their own business on the online marketplace. It specializes in bespoke items, handicrafts, and stuff not commonly found in High Street stores.

Etsy Inc. is a corporation established in the United States that trades its stock on the Nasdaq stock exchange in New York, where it first listed its stock in 2015.

Etsy: Online Marketplace Lays Off 11% Of Staff To Cut Costs

Etsy’s stock is trading at roughly $84 per share, down from a peak of more than $294 during the Covid-19 pandemic in 2021.

Major financial organizations like Vanguard Group and BlackRock are among its largest owners.

Josh Silverman, the company’s CEO, has worked at various companies, including online auction site eBay, internet chat provider Skype, and American Express. He has served as CEO since 2017.

It was formed in 2005 by Rob Kalin, Chris Maguire, Haim Schoppik, and Jared Tarbell, who worked out of Mr Kalin’s Brooklyn flat. The company still employs none of them.

After merchants complained about money being withheld, Etsy announced a policy adjustment in August.

The U-turn came after the BBC revealed that 75% of some sellers’ funds had been blocked for 45 days.
Etsy stated that it was “substantially decreasing” the money it would keep but did not specify the new rate or time frame.

Etsy is an online marketplace for handmade, vintage, and unique goods. It provides a platform for independent sellers to reach a wide audience of potential buyers.

Customers can browse through a variety of items, including jewelry, clothing, home decor, and more. Sellers can create their own virtual storefronts to showcase their products and connect with shoppers. Etsy offers a diverse range of items that cater to individual tastes and preferences.

Etsy has recently undergone layoffs as part of a restructuring effort to streamline its operations and increase efficiency. The company made the decision to reduce its workforce in order to focus on key strategic priorities and long-term growth.

The layoffs are expected to result in cost savings for the company while allowing it to reallocate resources to areas of the business with the highest potential for success.

SOURCE – (BBC)