Creative marketplace Etsy is slashing 15 per cent of its workforce

Courtney Goldsmith
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Hand-crafted knitwear is popular on Etsy (Source: Getty)

Online craft marketplace Etsy will slash its global workforce by 15 per cent as it works to overhaul its internal operations.

The Nasdaq-listed firm is "sharpening its focus" on key initiatives by "realigning internal resources" to pursue the highest-growth opportunities and deliver value for its stakeholders.

Shares in the firm lifted just over one per cent in US morning trading.

Many a hipster's beloved online marketplace, Etsy was founded in 2005 and floated in New York in 2015, but this year it has been shedding jobs.

In addition to job cuts announced on 2 May, the total eliminated positions will be approximately 230, or a 22 per cent reduction compared to its headcount at the end of 2016.

Josh Silverman, who took the job as chief executive in May, said:

"My conviction that Etsy has a unique opportunity within the e-commerce space has intensified during my initial weeks as chief executive. Our vibrant community, strong brand affinity, 45m listings, and ability to connect people through commerce provide us with a differentiated offering and solid foundation for growth. By focusing on our 'vital few' initiatives, we will be a more disciplined company that is better positioned to create the world's most compelling buying and selling experience."

Job cuts will primarily be in marketing, product management and general and administrative roles, Etsy said.

"Parting ways with our colleagues is not easy and I am thankful for their contributions. We are moving forward with a more nimble structure that supports our current business needs and allows for faster execution so we can better serve creative entrepreneurs around the world."

Etsy's new areas of focus include "enhancing search and discovery, improving the buyer journey, driving frequency, maximising the effectiveness of our marketing spend, and providing world-class seller marketing tools".

Read more: Etsy's shares jump on strong revenue despite earnings loss

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