Etsy to cut global staff by 22 per cent this year
Etsy has announced another round of layoffs this week as it realigns internal resources to focus on key growth initiatives.
The global online marketplace said on Wednsday it will cut approximately 140 positions, or around 15 per cent of its total current workforce.
This is Etsy’s second round of layoffs this year and brings the total number of lost jobs to around 230, or approximately 22 per cent of the total current workforce.
In a statement to investors, Etsy’s CEO Josh Silverman explained that focusing on a “vital few” initiatives would help the company to better position itself moving forward.
“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,” he said.
“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.”
According to the statement, areas of prioritisation include enhancing search and discovery, improving the buyer journey, driving frequency, maximising the effectiveness of marketing spend and providing world-class seller marketing tools.
The company said it is pausing brand marketing initiatives for the remainder of 2017, but will remain focused on buyer acquisition initiatives.
Jobs on the chopping block are primarily in marketing, product management, and general and administrative positions in Etsy’s Brooklyn headquarters, however global offices will also be affected.
The company expects to incur employee severance charges and other exit costs of US$6.0 million to US$8.8 million related to today’s announcements.
This is in addition to approximately US$6.5 million to US$8 million of severance charges and other exit costs we now expect to incur for the reductions announced in May.
Internet Retailing has reached out to Etsy Australia for comment and will update this article.