Shares of Etsy Inc dropped on Wednesday after the e-commerce platform announced it would slash 11 percent of its workforce as it seeks to cut costs, pressured by weakening demand for handcrafted goods.

Etsy will lay off 225 people, about 11 percent of total staff, and will incur financial charges of between $25 million and $30 million for severance payments, employee benefits and related costs, the company said in regulatory filings on Wednesday.

Etsy also announced several organisational changes and the departure of several executives, including Ryan Scott, chief marketing officer. Following the job cuts, Etsy’s headcount will drop to 1,770 people.

The company’s shares, down 32 percent year-to-date, fell to as low as $78.54 after the announcement and were on track for the biggest daily percent decline since August. The stock was down more than 8 percent at one point and was last down 5 percent.

The median price target of the 32 analysts covering Etsy’s stock is $70, unchanged from a month ago, and their current recommendation is “hold,” according to LSEG data.

Last month, Etsy warned of a possible decline in its gross merchandise sales in the fourth quarter as consumer spending on non-essential goods shrinks ahead of the holiday season.

By Chibuike Oguh; Editing by David Gregorio

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