Online marketplace Etsy has announced a reduction of its workforce by 11%, or 225 jobs, as it faces “very challenging” economic times.
As part of the restructuring, multiple senior executives are set to leave the business, including Chief Marketing Officer, Ryan Scott, who has been with the business since April 2019.
Instead, current Chief Operating Officer, Raina Moskowitz will take responsibility for marketing operations. In a statement, CEO Josh Silverman revealed, Moskowitz will work to drive growth globally by expanding brand consideration and deepening customer trust and loyalty.
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“I’m excited to see Raina leverage her extensive marketing experience from her time with American Express, where she successfully grew share of wallet with their existing customer base while strategically attracting new customers,” he said. 
According to Silverman, who thanked Scott for introducing “tens of millions” of new customers to the platform and for “transforming” the brand globally, the lay-offs were a result of sales remaining “flat” for the past two years.
However, Silverman revealed those affected would be paid until at least 2 January 2024.
He said: “We assessed how each team at Etsy mapped against our growth priorities and reviewed every single team member, starting from our most senior levels, to determine how well their roles and skills matched our current and future business needs.”
In its latest results, the company announced a rise in active buyers, with a 4% year-over-year increase, equating to an “all-time high” of 92 million active buyers, it also announced quarterly revenue of £502 million ($636.3 million), an increase of 7% year-on-year.
However, despite this, Silverman said: “At the same time, employee expenses have grown, even as we have introduced significant cost-cutting measures and adjusted or paused hiring plans. This is ultimately not a sustainable trajectory and we must change it.”
