Etsy Layoffs: 11% of staff being cut, focused 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 layoffs 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.

Etsy layoffs 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.

Severance offers for Etsy employees

While severance packages for affected Etsy employees are expected to include “16 weeks of base pay, plus one week for each full year of service”, Canadian workers who are let go could be owed as much as 24 months’ pay.

In Canada, non-unionized employees at the e-commerce giant are entitled to full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes non-unionized individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are owed is calculated using a variety of factors, including age, length of service, position at the company, and your ability to find new work.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages during mass layoffs

Major tech layoffs continue

Etsy isn’t the only tech company that has announced sweeping layoffs in 2023.

Big names, including Spotify, Unity, Broadcom, ByteDance, Amazon, Informatica, Ubisoft, Bungie, Splunk, and Nokia, have significantly scaled back their staffing levels as they continue to navigate challenging economic conditions.

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• Firm launches $130M class action against Shopify for breach of contract
• Report: Canadian video software company Vidyard slashes 20% of staff
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.