Etsy Is Axing about 150 More Jobs
New York-based e-commerce company, Etsy Inc, has announced that it will be cutting an additional 15% of its global workforce. At the end of 2016, Etsy’s workforce stood at about 1,000 employees.
The company also cancelled its internship program for the summer and rescinded at least one job offer that was made to a new graduate.
In total this year, the company will be cutting 22% of its workforce, which translates to about 230 employees.
The latest round of layoffs will mostly hurt employees at Etsy’s corporate headquarters in Brooklyn, New York. The jobs being cut include positions in marketing, product management, and administration.
Financial Woes Plaguing E-Commerce Company
This is the second round of layoffs at Etsy since May, after the company announced disappointing quarterly earnings. Etsy has been losing money and has failed to turn around its fate, despite raising capital in its initial public offering (IPO) in 2015.
The company’s financial troubles forced its former CEO, Chad Dickerson, to resign in May, and 80 employees were also sent home around the same time.
The latest round of layoffs comes under the leadership of the new CEO, Josh Silverman, an Etsy board member who took charge following Dickerson’s departure.
The layoffs are part of the company’s cost-cutting efforts. Silverman points out that, while there will be a long-term benefit in terms of cost savings, the primary aim behind the layoffs is to make the company’s organizational structure leaner and more efficient by removing bureaucratic layers. “While there are often talented people in those roles, it slows us down,” said Silverman.
Etsy will now focus on growth by targeting areas where it sees potential. Silverman pointed out that the company will be realigning its resources to the “fewest, most impactful areas where we need to succeed.”
Etsy, which is an online marketplace for members to sell and buy specialty items, particularly handmade goods, is facing stiff competition from Amazon.com. Inc., as the e-commerce giant opens its own online store for handmade goods. Etsy also faces competition from eBay Inc.
Etsy management is now shifting their focus toward the mobile sector, as the company tries to achieve a higher conversion rate on its mobile traffic.
“Exclusive: Etsy Is Reorganizing Its Workforce, Which Includes More Layoffs,” Fortune, June 21, 2017.
“There’s more to worry about at Etsy than just canceled internships,” Mashable, May 27, 2017.
“Etsy has ousted its CEO and is laying off 8 percent of its staff,” Recode, May 2, 2017.