Etsy Is Rescinding Job and Internship Offers Following Layoffs
The well-known peer-to-peer e-commerce website Etsy Inc is now retracting job and internship offers, following massive layoffs announced earlier in May.
The popular online marketplace for unique hand- and factory-made goods has rescinded at least one full-time job offer. At the same time, the company has also informed its summer interns, who were due to begin their internships this summer, that the company has cut the positions and will no longer be hiring them.
The latest job cuts follow Etsy’s corporate shakeup earlier the same month, when the company laid off eight percent of its workforce. These layoffs also happened to include Etsy’s former CEO Chad Dickerson, who was forced out of the company after the company reported disappointing earnings for the first quarter of 2017. The company barely broke even under the former CEO, reporting zero earnings per share.
Etsy board member Josh Silverman took charge of the company as the new CEO. Silverman happens to have served in a similar capacity at eBay Inc sister web site Shopping.com.
Silverman is now pushing for restructuring in order to streamline the business, cut costs, and turn Etsy back to profitability. The company is now focusing on improving user experiences for its mobile visitors, who have not been converting into buyers.
The mass layoffs were part of the company’s cost-cutting efforts, in which roughly 80 employees (eight percent of Etsy’s workforce) were sent home.
E-Commerce Competitors Put Heat on Etsy
Etsy has been facing stiff competition from bigger e-commerce giants, Amazon.com, Inc. and eBay, both of which boast a bigger customer base than Etsy does, and which have started tapping into Etsy’s niche of specialty handmade goods. Amazon, for instance, has recently launched a new online shop for handmade wedding items like bridal accessories, favor boxes, and cards—which have been an Etsy specialty. (Source: Mashable, op cit.)
Etsy is a publicly traded company and receives strong market scrutiny and investor oversight. Black-and-White Capital LP, an activist hedge fund that is invested in Etsy, is now pushing management to take strict actions to cut costs in order to make the company an attractive acquisition target. (Source: Recode, op cit.)
“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.