Etsy, the handmade vintage and craft items e-commerce store, announced that it will cut 15% of its workforce, which is about 140 job positions.
This will be the second time in the same year that Etsy will be undergo such a massive slashing of jobs. The first time the company cut jobs was earlier this year in May. Combining this and the previous slashing, Etsy will have cut out about 22% of its workforce which translates to about 230 jobs.
Since the company went public in 2015, it has been through some rough moments, including the replacement of former CEO Chad Dickerson with the current CEO Josh Silverman. During the first quarter of 2017, the company recorded $421,000 in losses and about $1 million in the quarter before.
In a statement released by Silverman, he said, “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. 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.”
The job cuts are an attempt to streamline the company’s focus and redefine its priorities. This round of layoffs will most probably be focused in its Brooklyn headquarters. This job cuts will cost the company about $6 to $8.8 million while the previous one cost between $6.5 to $8 million. The company’s stock increased a little less than 1%.
Megha Shah for TechFunnel.com