Syndication: Detroit Free Press
(New York, NY) — Etsy stock is tumbling as the company lays off hundreds of employees. The e-commerce giant announced on Wednesday that it was laying off eleven-percent of its workforce over the holidays, which comes to about 225 employees. CEO Josh Silverman said in a letter to employees that sales have remained “essentially flat” since 2021 and that employee expenses have grown, and that it was “not a sustainable trajectory.” Shares of Etsy closed two-percent lower following the announcement.
Workers were notified in a livestream on Wednesday hosted by Silverman. He told them that employee expenses had grown while sales had not. Silverman says they tried some cost cutting moves before making the decision to layoff staff members. He apologized for the timing of the announcement right before Christmas and New Years. He told laid off workers that they will receive their salaries through at least January 2nd.
