Etsy, Inc. (NASDAQ:ETSY) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities.
efficiency and streamline its cost structure through headcount
reductions of approximately 80 positions (approximately 8% of the
total workforce) and a reduction in internal programs (the May
Plan). Etsy originally estimated severance charges and other
exits costs of $4.5 million to $6 million relating to the May
Plan. The May Plan severance charges and other exit costs are now
expected to be in the range of $6.5 million to $8 million,
largely made up of cash expenditures, due to the finalization of
separation agreements and additional headcount reductions of 10
persons. These costs will be recognized through the end of 2017.
additional initiatives associated with the May Plan that are
designed to improve focus on key strategic growth opportunities.
These initiatives include additional headcount reductions of
approximately 140 positions (approximately 15% of the total
current workforce) bringing total eliminated positions to
approximately 230, or an approximately 22% reduction, compared to
its headcount at the end of 2016. In connection with these
initiatives, Etsy expects to incur additional employee severance
charges and other exit costs of $6.0 million to $8.8 million,
largely made up of cash expenditures, which will be recognized
through the end of 2017. Etsy announced these additional
initiatives on June 21, 2017.
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Exhibit No.
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Description
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99.1
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Press Release issued by Etsy, Inc. on June 21, 2017
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ETSY INC ExhibitEX-99.1 2 ex99162117.htm EXHIBIT 99.1 Exhibit Etsy Sharpens Focus on Key Growth InitiativesDoubles down on key initiatives to drive GMS in Etsy’s core marketplaceRealigns internal resources and reduces global headcount by approximately 15%BROOKLYN,…To view the full exhibit click here About Etsy, Inc. (NASDAQ:ETSY)
Etsy, Inc. (Etsy) operates a marketplace to connect people around the both online and offline for making, selling and buying goods. The Company’s geographical segments include United States and International. The Company’s community includes Etsy sellers, Etsy buyers, wholesale partners, manufacturers and Etsy employees. The Company’s platform includes marketplace, Seller Services, technology and community, both online and offline. The Company offers a range of services to help Etsy sellers build their personal brands, engage customers and complete transactions. The Company has over three seller services: Promoted Listings, Direct Checkout and Shipping Labels. Its Promoted Listings offering enables an Etsy seller to pay a cost-per-click-based fee to feature and promote her goods in search results generated by Etsy buyers on its platform. Its Direct Checkout offering allows Etsy sellers to accept various forms of payment, such as credit cards, debit cards, PayPal and Etsy gift cards.
