Etsy Cuts 11% of Staff to focuse on ‘Reigniting Growth’

E-commerce giant Etsy announced that it’s cutting approximately 225 jobs, or 11 per cent of its workforce, as it restructures its business.

According to reports, the restructuring is expected to be complete by the end of the first quarter of 2024.

What’s happening at Etsy?

In a letter to staff that was obtained by multiple news outlets, CEO Josh Silverman said the company is “operating in a very challenging macro and competitive environment.”

“[Currently,] we are not bringing our sellers more sales, which is the single most important thing we can do for them,” Silverman said in the Dec. 13 letter.

“At the same time, employee expenses have grown, even as we have introduced significant cost-cutting measures and adjusted or paused hiring plans. This is ultimately not a sustainable trajectory and we must change it.”

He added in a statement to CNBC that Etsy is “intensely focused on reigniting growth.”

How much does Etsy expect the cuts to cost?

In a regulatory filing, Etsy said it expects to incur “approximately $25 million to $30 million in charges, largely made up of cash expenditures, consisting of severance payments, employee benefits, and related costs.”

Following the job cuts, the company’s headcount is expected to sit around 1,770 people — similar to its staffing levels in early 2022.

Impact in Canada

It remains unclear if Canadian employees are affected by the latest reduction at Etsy.

According to the company’s LinkedIn page, it has more than 260 workers in the country.

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