Once home to vintage and handmade wonders, Etsy grew into the same dropshipped mass-produced landfill stuffing that everywhere else sells. And now it shrinks, laying off 11% of its workforce days before Christmas.
Approximately 225 employees will be cut from Etsy's workforce, which will bring the headcount for the core Etsy marketplace to about 1,770 people, similar to the company's headcount in early 2022 and above 2020 levels.
Etsy CEO Josh Silverman noted in a letter to employees that Etsy's marketplace — known for selling handmade items and connecting buyers with local artisans across the globe — has more than doubled in size since 2019 but said today's realities call for sweeping changes.
Another this week is toy company Hasbro, cutting 20% of its workforce.
Layoffs at the toy company come after Hasbro cut its full-year revenue guidance in October — just before the holiday season, which is usually the strongest sales period for toy makers. On the company's earnings call, Hasbro's Chief Financial Officer Gina Goetter warned that the company was seeing "broader toy category declines."
However, not all toymakers are expecting weakness this holiday season. One of Hasbro's competitors, Mattel, said in its most recent earnings that it benefited from the success of the "Barbie" movie and the company "expects to gain market share in the fourth quarter and full year."
Companies fire staff en-masse at Christmas, despite how it looks, because it's convenient.
