In its Q1 earnings report today, Etsy revealed that the board is replacing Chad Dickerson, who has been CEO since 2011 and took the company public in 2015. Josh Silverman, who joined Etsy's board in November, will take over as CEO, while fellow board member Fred Wilson will be taking over Dickerson's role as chairman of the board. Etsy is also losing CTO John Allspaw.
"It has been an honor to lead Etsy as CEO for the past six years and the three years before that as CTO," Dickerson said in a statement. "The Board decided that it was time for new leadership to take Etsy forward and I support that decision."
Etsy's stock dropped by 14% following the announcement, though that can also be attributed to underwhelming earnings and forthcoming layoffs. The company is letting go of 80 employees—8% of its total workforce—to cut costs. And earlier today, Bloomberg reported that Etsy has been advised to consider a sale by hedge fund Black-and-White Capital LP, which has a 2% stake in Etsy.
"The company's historical pattern of ill-advised spending has completely obfuscated the extremely attractive underlying marketplace business model," Black-and-White wrote in a letter obtained by Bloomberg. "We are fully prepared to take any actions we believe are necessary to protect the best interests of all Etsy shareholders." PM