Etsy, the online retail platform, is laying off 225 employees or around 11% of its workforce, due to essentially flat gross merchandise sales over the past two years and rising employee expenses despite cost-cutting measures. Etsy CEO Josh Silverman announced the layoffs to employees via livestream, acknowledging the unfortunate timing during the holiday season. Affected employees will remain on payroll until at least January 2nd. Etsy stock dropped 2.2% on the news of layoffs and restructuring to become a "leaner, more agile" company. Several executives are also leaving, including the chief marketing officer. The layoffs are estimated to cost between $25-30 million related to severance pay and benefits.
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00:00 It's Benzinga and here's what's on the block.
00:02 Etsy, the online retail platform, is laying off 225 employees or around 11% of its workforce
00:07 due to essentially flat gross merchandise sales over the past two years and rising employee
00:12 expenses despite cost-cutting measures.
00:14 Etsy CEO Josh Silverman announced the layoffs to employees via livestream, acknowledging
00:18 the unfortunate timing during the holiday season.
00:21 Affected employees will remain on payroll until at least January 2.
00:25 Etsy stock dropped 2.2% on the news of layoffs, restructuring to become a leaner, more agile
00:29 company.
00:30 Several executives are also leaving, including the chief marketing officer.
00:34 The layoffs were estimated to cost between $25-30 million related to severance pay and
00:38 benefits.
00:39 For all things money, visit Benzinga.com.
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