Etsy To Lay Off 15% Of Its Workforce, Bringing Total Reduction To 22% This Year

Etsy Inc. shares were up 1% in premarket trade Wednesday after the company announced it is cutting 15% of its workforce, or about 140 positions. This adds to previous headcount reductions to bring the total of layoffs to 230 positions, or a 22% reduction in its workforce this year. Along with the May reduction in staff, the company replaced its Chief Executive Chad Dickerson with Josh Silverman, an Etsy board member. The layoffs will largely be in marketing, product management, general and administrative positions, Etsy said, and will largely take place in the company's Brooklyn headquarters. Silverman said the layoffs were put in place to focus on initiatives including search and discovery, improving seller tools and increasing marketing speed. Wednesday's reduction of workforce is expected to cost $6 million to $8.8 million, in addition to the $6.5 million to $8 million in costs associated with the layoffs announced in May. Shares of Etsy have gained 40% in the past three months, compared to the S&P 500's gain of 4%.