Etsy to slash 15 percent of its workforce in addition to ongoing cuts

Key Points
  • It's the second round of layoffs Etsy has announced in two months.
  • Combined, the cuts account for 22 percent of the online marketplace's workforce.
An employee walks past a quilt displaying Etsy signage at the company's headquarters in Brooklyn, New York.
Victor J. Blue | Bloomberg | Getty Images

Etsy, the online market for handmade, vintage and craft items, will cut 15 percent of its workforce.

It's the second wave of job cuts. Combined with a round in May, the reductions amount to about 22 percent of the staff, according to a press release.

Etsy has struggled in its first two years since going public, ousting former CEO Chad Dickerson in May and replacing him with Josh Silverman. The layoffs are part of an attempt to refocus the company's priorities.

"In order to drive focus, we took decisive steps to double down on the fewest, highest-impact initiatives in our core marketplace while de-prioritizing other projects and streamlining our resources," Silverman said in a statement. "Parting ways with our colleagues is not easy and I am thankful for their contributions. We are moving forward with a more nimble structure that supports our current business needs and allows for faster execution so we can better serve creative entrepreneurs around the world."

About 230 jobs will be eliminated in the two cuts. Most layoffs this round will primarily be in the marketing, product management and general and administrative departments out of the company's Brooklyn headquarters.

Etsy expects the latest severance charges and other exit costs to total $6 million to $8.8 million, according to a press release. It said the May cuts cost about $6.5 million to $8 million.

The company's stock inched up less than 1 percent following the announcement.