Etsy, the online marketplace for people to sell crafts and handmade products, announced this week its second round of job cuts in a little more than a month as it attempts to refocus operations.
On Wednesday, the New York-based company said it would be cutting 140 jobs, adding to a round of cuts announced on May 2. All told, Etsy said it would be eliminating 230 positions, or about 22 percent of what its workforce was at the end of 2016. The reductions will focus on areas such as marketing, product management and administration, and they will mainly target the Brooklyn headquarters.
Etsy rose to prominence as an early e-commerce site catering to the crafting crowd, but it has encountered stiff competition in recent years as a number of large companies and small began to offer similar platforms for people to sell what they make. The company counts Amazon.com, Craigslist and eBay as competitors, as well as commerce channels on social networks like Facebook and Instagram. (Amazon.com chief executive Jeffrey P. Bezos owns The Washington Post.)
Even with 45 million listings, Etsy has struggled to post profits since it went public two years ago, and recently replaced longtime chief executive Chad Dickerson with Josh Silverman, a former chief executive of Skype and former CEO of eBay’s Shopping.com. In May, Etsy reported revenue of $96.9 million for its most recent three-month period, and a loss of $421,000.