Shares of Etsy (ETSY) fell sharply after the company announced it was cutting 225 jobs, about 11% of its workforce. In a statement, CEO Josh Silverman says the company is "reorganizing our internal structure to more closely align our resources with our most important business priorities." Yahoo Finance Live has the breaking news announcement.

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Video Transcript

- The Etsy shares taking a hit after the company laid off 11% of its staff. The CEO Josh Silverman saying the cuts were needed to bring down expenses as the company is adjusting to a very challenging macro environment. The Etsy layoffs coming after toymaker Hasbro cut more than 1,000 jobs earlier this week. They cited softer sales during the crucial holiday season. That was about 20% of their staff, Jared.

And we're also hearing news about Citigroup offering partial early bonuses to encourage staff departures. We heard something similar from Wells Fargo. I mean, unfortunately, tis the season of these layoffs and cost cutting heading into the new year, right?

- Yeah, unfortunately, we do see this heading into the new year in December, the head cutting season, if you will. And also, companies like Citigroup are just looking to reduce some of their expenses. They'll make an offer, and maybe people will take it here. I think it speaks to the larger issue of employment. And we saw the tech layoffs kind of take off a year, year and a half ago, and there really wasn't a lot of fallout or follow up from that.

Outside of the tech sphere, the job market has been incredibly strong. We got the latest data from the government, or the BLS, last Friday. So the jobs market has been rocking and rolling here and we're just getting these little incremental bits of news. So industry wide, we see cracks in manufacturing and construction first. Haven't seen that, tech layoffs those tend to come first as well. We got those and a few of those in the rearview mirror, but hard to speculate what 2024 brings.

- Yeah, it's interesting too that they talked about the macro environment when we've been talking about spending, staying strong, Jared. But as you mentioned with the Taylor Swift economy yesterday, maybe that's credit delinquency related more than anything else.

- Yes. And hopefully, the Taylor Swift-- Taylor made economy doesn't become the Taylor tanked economy in 2024.

- Ooh. Brand that. There you go.

- Thank you.