Etsy cuts 11% of staff and stock price tumbles
The height of the holiday season is upon us, and Etsy is cutting 11% of its staff, looking to restructure the business and cut costs. Josh Silverman, Etsy CEO, said, “We must streamline costs against a “very challenging” macro and competitive environment.” This cut will affect about 225 employees who will be cut from the workforce.
Today, Etsy also updated its fourth-quarter guidance, expecting its adjusted EBITDA margin to be between 27% and 28% — up from previous guidance of 26% to 27%. EBITDA (Earnings before interest, taxes, depreciation, and amortization) is the measure of core corporate profitability and calculates its number by adding interest, tax, depreciation, and amortization expenses to the net income of the entity.
Etsy, Inc. is an American eCommerce company focusing on handmade or vintage items and craft supplies. Independent crafters, artists, and collectors can sell their items here. People sell under a broad range of categories with featured jewelry, furniture, toys, clothing, tools, and even art. Within two years, it had half a million users and $ 26 million in sales. Etsy’s most prominent competitors are brands like Shopify and Amazon.
Etsy is currently trading at $ 81.54 at the time of this writing.
Featured Image Credit: Andrea Piacquadio; Pexels
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