Etsy cuts 11% of staff during Christmas gift season
E-commerce company Etsy on Wednesday said it will cut about 225 workers, including leadership positions.
In a regulatory filing, Etsy announced an 11% cut in its workforce, including Chief Marketing Officer Ryan Scott. The firings drop Etsy’s workforce to just over 1,770 people.
In the same filing, the company said it expects severance pay to total $30 million for fired workers.
The layoffs sent a shockwave through Etsy’s stock price, dropping it to the lowest point since August. The stock’s current price sits at about $82.
The timing of the cuts is surprising to some since Christmas usually is one of the best times for e-commerce companies like Etsy. However, the firm said last month that it doesn’t expect the holiday season to help much.
Despite slowing inflation, consumers are spending less on nonessential items across the board. Popular toy maker Hasbro announced similar layoffs this week in anticipation of lower-than-average holiday sales.
