SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 16, 2017
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
117 Adams Street
Brooklyn, New York 11201
(Address of principal executive offices, including zip code)
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.05 Costs Associated with Exit or Disposal Activities.
On May 2, 2017, Etsy, Inc. ("Etsy") announced a plan to increase 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.
On June 16, 2017, the Board of Directors of Etsy approved 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.
Item 9.01 Financial Statements and Exhibits
Press Release issued by Etsy, Inc. on June 21, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
By: /s/Rachel Glaser
Chief Financial Officer
Dated: June 21, 2017