Handmade and vintage e-tail company Etsy, Inc. announced it will be cutting 140 positions, or approximately 15% of its total current workforce worldwide. The news is in addition to the headcount reductions announced just last month, bringing total eliminated positions to approximately 230, or an approximate 22% reduction compared to the end of 2016.
The cuts will primarily hit marketing, product management, and general & administrative positions. The majority of eliminated positions will come from the company’s Brooklyn headquarters, but it expects to streamline operations in global offices as well.
In a statement, the company said that it will continue to pursue global growth opportunities but are pausing brand marketing initiatives for the remainder of 2017. No further details on the marketing hold were given.
With the cuts, the company expects to incur employee severance charges and other exit costs of $6.0 million to $8.8 million. This is in addition to approximately $6.5 million to $8 million of severance charges and other exit costs expected for the reductions announced in May.
The company says the cuts will allow it to re-prioritize its operations, enhancing search and discovery, improving the buyer journey, driving frequency, maximizing the effectiveness of our marketing spend, and providing world-class seller marketing tools.
Josh Silverman, Etsy’s Chief Executive Officer, commented, “By focusing on our ‘vital few’ initiatives, we will be a more disciplined company that is better positioned to create the world’s most compelling buying and selling experience.”
Josh continued, “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.”