Etsy to cut workforce by 11%

Etsy has announced it will axe 225 employees as part of a new restructuring programme.

The online marketplace said that it was cutting 11 per cent of its workforce to “drive growth” and support its sellers.

In an online statement, the company’s chief executive Josh Silverman said that while the marketplace is more than double the size it was in 2019, the organisation needs to “adjust for today’s realities”.

“We are operating in a very challenging macro and competitive environment, and GMS has remained essentially flat since 2021,” wrote the chief exec. “This means we are not bringing our sellers more sales, which is the single most important thing we can do for them.”

Despite its attempts at significant cost-cutting measures, as well as adjusted or paused hiring plans, Silverman explained that these measures were "not sustainable" and that employee expenses have continued to grow.

After "extensive discussions", Etsy decided that a "leaner, more agile team" would help it focus on its key growth priorities and maintain a sustainable cost structure.

The company has also reviewed its executive team, bringing its core products and services together by moving the payments and fulfilment functions to Nick Daniel in the product organisation.

After nearly five years of building the company's marketing team Ryan Scott will be leaving Etsy, with the company consolidating its marketing organisation under Raina Moskowitz's leadership.

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