Etsy To Layoff 11% Workforce
As a result of the layoffs, Etsy's workforce will be reduced to approximately 1,770 people. The company's headcount will be similar to early 2022 levels, according to Silverman's announcement.
"Following extensive discussions and analysis with senior leaders, it was apparent that a leaner, more agile team would enable us to properly focus on our key growth priorities, move bold and fast, and maintain a sustainable cost structure," Silverman said in a statement. He admitted that firing some employees was "absolutely not an option we wanted to pursue," but it was a necessary business decision.
Etsy's severance package for those laid off this week includes 16 weeks of base pay plus one week for each full year of service; payment of accrued, unused paid time off; a year of COBRA health care coverage for U.S. employees, including mental health support; and three months of career service support. Employees who leave can also keep their company laptops.
In addition, the company detailed new responsibilities for key executives following the restructuring. Moskowitz will be in charge of the marketing, international markets, trust and safety, member support, strategy and operations, and impact teams at Etsy. As part of the changes, Moskowitz will delegate responsibility for payments and fulfilment to Chief Product Officer Nick Daniel.
