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Etsy Sharpens Focus on Key Growth Initiatives
BROOKLYN, N.Y., June 21, 2017 /PRNewswire/ -- Etsy, Inc. (NASDAQ: ETSY), which builds markets, services, and economic opportunity for creative entrepreneurs, today announced that it is sharpening its focus on key initiatives and realigning internal resources to pursue the highest-growth opportunities in order to deliver value to its stakeholders. Areas of prioritization include enhancing search and discovery, improving the buyer journey, driving frequency, maximizing the effectiveness of our marketing spend, and providing world-class seller marketing tools. We are realigning our resources to support these critical areas and enable faster execution. As a result, we are also reducing our headcount by approximately 140 positions, or approximately 15% of our total current workforce. This is in addition to the headcount reductions announced on May 2, 2017, bringing total eliminated positions to approximately 230, or an approximate 22% reduction compared to our headcount at the end of 2016. Josh continued, "In order to drive focus, we took decisive steps to double down on the fewest, highest-impact initiatives in our core marketplace while de-prioritizing other projects and streamlining our resources. Parting ways with our colleagues is not easy and I am thankful for their contributions. We are moving forward with a moe nimble structure that supports our current business needs and allows for faster execution so we can better serve creative entrepreneurs around the world." The headcount reductions will include primarily marketing, product management, and general & administrative positions. The majority of eliminated positions will be in our Brooklyn headquarters, but we will also streamline operations in our global offices. We remain committed to leveraging our scalable model in order to support sellers around the world and pursue global growth opportunities. Within marketing, we remain focused on buyer acquisition initiatives, but are pausing brand marketing initiatives for the remainder of 2017. We expect to incur employee severance charges and other exit costs of $6.0 million to $8.8 million related to today's announcements. This is in addition to approximately $6.5 million to $8 million of severance charges and other exit costs we now expect to incur for the reductions announced in May. About Etsy Etsy was founded in 2005 and is headquartered in Brooklyn, New York. Forward-Looking Statements Forward-looking statements include all statements that are not historical facts. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to, Etsy's ability to achieve the intended results of its realignment and cost-savings initiatives and successfully execute against its key areas of prioritization. These risks and uncertainties are more fully described in Etsy's filings with the Securities and Exchange Commission, including the Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. Forward-looking statements represent Etsy's beliefs and assumptions only as of the date of this press release. Etsy disclaims any obligation to update forward-looking statements. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/etsy-sharpens-focus-on-key-growth-initiatives-300477492.html SOURCE Etsy, Inc. |