Dive Brief:
- Following a challenging third quarter, Etsy announced three new C-suite appointments and two executive departures, all effective in January, according to a Thursday press release. Chief among them, the company promoted Kruti Patel Goyal from CEO of Depop to president and chief growth officer of Etsy, Inc. A search for Depop’s new leader is underway.
- Raina Moskowitz, Etsy’s chief operating and marketing officer, is leaving Etsy to take a CEO job elsewhere, while Chief Technology Officer Rachana Kumar will leave to “pursue new opportunities.” A search is underway for Kumar’s successor, while Moskowitz will be replaced by Brad Minor, who is currently Etsy’s chief brand officer.
- Etsy also named Lanny Baker as its new CFO, bringing with him prior C-suite experience with companies like Eventbrite, Yelp and Monster Worldwide. Rachel Glaser, the company’s current CFO, announced her 2025 retirement over the summer, ending her nearly 40-year career in finance.
Dive Insight:
Etsy is making sweeping changes to its C-suite, which it says are “unrelated to Etsy’s overall financial performance.”
The executive shakeup follows the release of mixed third-quarter results at the end of October. While the company’s consolidated revenue rose 4.1% year over year to $662.4 million, its net income fell $30.5 million from last year to $57.4 million. Its operating expenses saw an 8.6% uptick to nearly $390 million. Active buyers remained relatively flat, decreasing by 0.4% to 91.2 million, but its reactivated user base saw a 5.6% bump to 6.4 million.
During an earnings call with analysts earlier this year, Etsy CEO Josh Silverman said that Amazon, Walmart, Temu and Shein were gaining more market share. Those competitors are all selling similar goods at cheap prices and shipping them faster, Silverman said, and Etsy is looking to differentiate itself from them by staying away from mass-produced goods.
Amid all the executive changes, Goyal will step into a new position as chief growth officer, responsible for creating a more compelling experience for Etsy and its sellers. She will continue as the CEO of Depop until April 2025 and will help the Etsy subsidiary find a new chief executive, per the company’s press release. In a statement, Silverman credited Goyal with facilitating Depop’s success.
“Over the past decade, Kruti has built and scaled critical functions for Etsy during high-growth periods. Most recently, she led an exciting transformation at Depop, making it the top-performing brand in our portfolio from a growth perspective,” Silverman said. “Etsy is at an inflection point; we must stay true to our roots while innovating and evolving to meet the ever-changing needs of today’s customer. Kruti is uniquely positioned to take on this challenge.”
A year prior to its most recent C-suite departures, Etsy reduced its employee headcount by roughly 225 employees, about 11% of its workforce. At that time, the company’s former chief marketing officer, Ryan Scott, and its chief human resources officer, Kimaria Seymour, left the company.
