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.


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