The US online marketplace operator Etsy Inc. announced extensive reform plans on Wednesday. Given the difficult market conditions and high personnel costs, the company had to take drastic cost-cutting measures, said CEO Josh Silverman in a letter to employees that was published on the company website.
Etsy is laying off eleven percent of its employees
Among other things, it would be necessary to cut around 225 jobs, Silverman explained. This means the company is reducing its workforce by eleven percent. “This decision was one of the toughest we have ever made and we seriously tried to avoid it,” admitted the CEO.
A “leaner, more agile team” will allow the e-commerce specialist to “focus on key growth priorities” and “maintain a sustainable cost structure,” Silverman explained. The focus is on the “simplicity and efficiency of the organizational structure” and “clear areas of responsibility”.
Those responsible for marketing and human resources are leaving the company
At the same time, the Etsy CEO announced changes to the leadership team that will take place on January 1st. Marketing boss Ryan Scott will leave the company. Raina Moskowitz will take on his responsibilities in addition to her previous areas of responsibility. In the future, she will act as Chief Operating and Marketing Officer.
HR manager Kim Seymour is also about to say goodbye. Her successor as Chief Human Resources Officer will be Toni Thompson, who currently holds a leadership position in the HR department as VP of Global People and Talent Strategy.