Etsy shares fall after e-commerce company lays off 11% of its employees

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  • 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.
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  • 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.

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