Etsy tanks after announcing a new CEO, flat earnings, and job cuts (ETSY)

pulse

May 2, 2017 9:26 PM

Etsy announced Tuesday that its CEO Chad Dickerson will step down on Wednesday May 3.

Etsy CEO Chad Dickerson

Etsy shares sank on Tuesday after the company announced a number of executive changes and signaled job cuts in its earnings report.

CEO Chad Dickerson steps down from the role on Wednesday, the online marketplace for hand-made goods said in a statement.

Josh Silverman, a board member, will replace Dickerson as chief executive.

John Allspaw, the chief technology officer, is leaving the company.

These announcements came hours 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. The fund also urged Etsy to separate the roles of chairman and CEO, which Dickerson jointly held.

Etsy shares fell by as much as 17% in after-hours trading on Tuesday, and were down nearly 10% early on Wednesday.

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