US-based e-commerce platform Etsy will axe 225 jobs as part of a major restructure as it faces “very challenging” macro and competitive economic conditions.
Chief executive Josh Silverman yesterday (local time) notified staff via livestream that about 11 per cent of Etsy’s workforce would be reduced to aid the platform’s “future growth”.
Silverman said the decision was “among the hardest, and one that we have tried earnestly to avoid”.
“While the Etsy marketplace is still more than double the size it was in 2019, we need to acknowledge and adjust for today’s realities,” Silverman said in a statement.
“We are operating in a very challenging macro and competitive environment, and GMS (gross merchandise sales) has remained essentially flat since 2021.
“This means we are not bringing our sellers more sales, which is the single most important thing we can do for them.
“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.”
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Affected staff will remain on the company’s payroll until January 2, 2024, with layoffs expected to cost up to US$30 million ($44.6 million) in total.
After the restructure is completed in 2024, Etsy will have 1770 employees.
“I believe that these changes put us at our ‘fighting weight’ – a more streamlined and agile team, similar to where we were early in 2022 in terms of the size of our core Etsy team, with renewed focus and conviction in our top priorities,” Silverman said.
Etsy, an online marketplace, was founded in 2005 and offers retailers a place to sell handmade goods, vintage clothing and arts and crafts.
The e-commerce platform offers shipping to Australia and features Australian sellers.
It is unclear how the lay-offs will impact Australian customers.
9news.com.au has contacted Etsy for comment.
