Etsy Falls After Naming New CEO and Announcing Job Cuts
- First-quarter revenue misses analysts’ average estimate
- Hedge fund Black-and-White urged company to cut costs
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Etsy Inc. shares tumbled the most in two months after it replaced its chief executive officer and said it would eliminate 8 percent of its workforce as it copes with slowing sales growth.
The artisan craft marketplace named director Josh Silverman CEO, replacing Chad Dickerson, effective Wednesday. Dickerson, who led the company for six years, will also step down as chairman, to be replaced by Union Square Ventures co-founder Fred Wilson, a longtime investor in the company. To account for the changes, Etsy also suspended providing guidance until August, when it reports the results for the second quarter.