Etsy axes 225 workers in cost-cutting drive

Etsy is scrapping 225 staff members to cut costs as it struggles with “very challenging” economic headwinds.

The redundancies, which equate to 11% of its workforce, will see several executives leave the business, including chief marketing officer Ryan Scott.

The online marketplace’s CEO Josh Silverman said the lay-offs were needed since sales had remained “essentially flat” for the last two years.

However, he noted the cuts were “unfortunate” timing over the holiday season and explained workers affected would be paid until at least 2nd January.

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Etsy told investors the cuts would cost the retailer as much as £23.7m for employee benefits, severance payments and related costs.

Posting on Etsy’s website, the executive said the lay-offs came under a strategy to make the business a “more focused, agile company”.

The redundancies are expected to be completed within the first three months of next year.

Earlier this year, Etsy said it would be “substantially decreasing” the amount of sellers’ funds held in its reserve globally, after UK vendors began boycotting the marketplace over a hold-up in payments.

The move came after the BBC reported that some sellers had 75% of their money frozen for 45 days.

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