Etsy Inc (NASDAQ:ETSY) has announced that it will be laying off roughly 15% of its workforce.
The Etsy layoffs will be hitting the company’s employees in its product management, marketing and administrative positions. The reason for the layoffs at the online retailer is to reduce its middle management and senior employees.
Etsy says that it is expecting charges from the workforce reduction to incur charges between $6 million and $8.8 million. Josh Silverman, the CEO of Etsy, says that there will be cost reductions from these layoffs. However, he notes that this wasn’t the company’s goal.
The announcement of the Etsy layoffs is likely connected to inner problems at the company. Shares are down from its IPO and some investors have been pushing for the company to put itself up for sale. The new batch of layoffs also come after a separate round was announced earlier this year, reports Fortune.
Silverman says that the newest round of Etsy layoffs will mainly hit about 140 employees working at the company’s headquarters in Brooklyn. The Etsy CEO is a new addition to the company that took over from Chad Dickerson around the same time as the earlier layoffs were announced.
Dickerson’s resignation from Etsy also separated the Chairman and CEO roles. Silverman took over as CEO and Fred Wilson took over the role of Chairman of the Board. During the same time, ETSY CTO John Allspaw also left the company. Dickerson and Allspaw stayed on with the company for a short while as advisors after stepping down from their positions.