Etsy Cuts 225 Jobs Amidst Flat Sales and Rising Expenses

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.