Etsy craters after announcing earnings were flat, its CEO is stepping down, and job cuts are coming
Etsy announced Tuesday that its CEO Chad Dickerson will step down from the role on Wednesday.
Josh Silverman, a board member, will replace Dickerson as chief executive of the online marketplace for hand-made goods.
"In the six months that Josh has been on our Board, we have gotten to know him well and he has gotten to know us well," said Fred Wilson, the incoming chair of the board succeeding Dickerson. "That will make for an easier transition and faster execution."
STOCK PRICE FOR ETSY
John Allspaw, the chief technology officer, is leaving the company.
Etsy also announced that it expects to eliminate about 80 jobs, or 8% of its workforce.
"Early in the second quarter of 2017, we also looked for opportunities to increase efficiency and streamline our cost structure," the company said. "As a result of this process, we have identified savings that will be realized through a combination of headcount reductions and a reduction in internal program expenses."
See a list of retailers closing stores in 2017:
These personnel changes came with the first-quarter earnings statement. Revenues of $96.9 million missed analysts' forecast for $98.4 million, according to Bloomberg. First-quarter earnings per share was $0.
"Although a challenging February contributed to lower than anticipated first quarter results, I am confident that the fundamental strength of Etsy's business and its unique competitive position will drive long-term growth for all stakeholders," Dickerson said.
Etsy shares fell by up to 14% in after-hours trading. The stock rallied earlier after hedge fund Black-and-White Capital, which owns a 2% stake in Etsy, urged the company to explore strategic alternatives including a possible sale, according to Bloomberg.
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