Etsy shares fell on Wednesday after the e-commerce platform announced it would lay off 11% of its personnel in order to decrease expenses in the face of diminishing demand for handcrafted goods.
Etsy will lay off 225 employees, or roughly 11% of its total workforce, and will incur financial charges of $25 million to $30 million for severance payments, employee benefits, and related costs, according to regulatory documents released on Wednesday, reported Reuters.
After the statement, the company’s shares, down 32% year to date, plummeted as low as $78.54 and were on track for the largest daily percent decline since August. At one point, the stock was down more than 8% and was last down 5%.
Etsy warned last month that its fourth-quarter gross merchandise sales could fall as consumer spending on non-essential goods falls ahead of the holiday season.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
