E-commerce company Etsy announced on Wednesday that it will be cutting approximately 225 employees, including leadership positions.
In a regulatory filing, Etsy revealed an 11% reduction in its workforce, which includes the termination of Chief Marketing Officer Ryan Scott. This downsizing brings Etsy’s total employee count to just over 1,770.
Additionally, the company stated in the same filing that it expects to pay $30 million in severance to the terminated workers.
These layoffs had a significant impact on Etsy’s stock price, causing it to drop to its lowest point since August. The current price of the stock is approximately $82.
The timing of these layoffs comes as a surprise to some, as the Christmas season is typically one of the most profitable times for e-commerce companies like Etsy. However, last month, the company expressed that it does not anticipate the holiday season to provide much assistance.
Despite a decrease in inflation, consumers are spending less on nonessential items overall. Popular toy maker Hasbro also recently announced similar layoffs in anticipation of below-average holiday sales.