Etsy boots its CEO and expects to cut some jobs

Etsy CEO Chad Dickerson has been removed after nearly six years in the position, the e-commerce company said Tuesday.

Dickerson had been in charge of Etsy since 2011. Prior to that, he was its chief technology officer for three years. The company's board is replacing him with board director Josh Silverman who will assume the reins on Wednesday.

Dickerson, who will remain with the company in an advisory role through the end of the month, said in a statement he respects the board's decision to seek new leadership.

"I have the greatest degree of confidence in the long-term growth opportunities for Etsy under Josh's leadership," he said.

Etsy's stock fell as much as 14 percent in after-hours trading. The small company specializing in handmade and personalized products competes against the likes of major e-commerce giants including Amazon, which launched its own storefront for handcrafted goods in 2015, and eBay.

Last month, the company created a site just for craft supplies called Etsy Studio to rival national retailers Michaels and Jo-Ann Fabrics.

Dickerson is also losing his spot as Etsy board chairman as longtime tech investor Fred Wilson will take over that role.

The company also announced Tuesday it will soon lay off 80 employees, approximately eight percent of its total workforce. Bloomberg reports Etsy is being targeted for possible acquisition by hedge fund Black-and-White Capital, which says it owns about 2 percent of the company.

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