Trending Videos
Takeaways
- E-commerce company Etsy plans to lay off 225 employees as well as its chief marketing officer.
- The company expects a cost of between $25 million and $30 million, which will primarily affect its balance sheet. fourth quarter.
- li>
- As part of the restructuring, Chief Marketing Officer Ryan Scott will remain with Etsy in an advisory capacity for an additional six months after the end of the year.
- Shares fell 2.2% to close at $83.97. bringing their year-to-date decline to 26%.
Shares of Etsy (ETSY) fell on Wednesday after the e-commerce platform announced it would lay off 11% of its employees. The company's marketing director will also resign.
News of the restructuring has broke out in an 8-K filing submitted to the Securities and Exchange Commission on December 12.
Etsy plans to lay off 225 employees, bringing back company's workforce at early 2022 levels.
The company expects $25 million to $30 million in associated charges, including severance and employee benefits; These costs will mainly affect the company's fourth quarter balance sheet.
Etsy said in the filing that the restructuring #39;would not have a material impact on the company's key fourth-quarter guidance.
The company expects fourth-quarter consolidated gross merchandise sales to decline between 1% and 2%, consistent with the company's projections in its third-quarter earnings release. The company also said it expects revenue to grow between 2% and 3% in the final quarter of the year, while EBITDA margin is set between 27 and 28%.
As part of the restructuring , Chief Marketing Officer Ryan Scott will leave his current role at the end of the year, but will remain in an advisory capacity until June 2024.
Etsy shares fell 2.2% to close trading Wednesday at $83.97. The stock is now down 26% for the year.
Trading View
Source: investopedia.com
