Going inside the cultural revolution at Etsy
The first time Josh Silverman addressed the staff of Etsy as their newly installed chief executive, he tried to connect with a workforce known for its diversity, idealism and sincerity.
“Hello,” he said. “My name is Josh. I identify as male. My preferred pronouns are ‘him’ and ‘he.’ Most people just call me Josh.”
It was May 3, and Silverman was speaking to a roomful of traumatized employees. The previous day, Etsy had fired 80 people, the first big layoffs at the online marketplace for handmade and vintage arts and crafts. Among those ousted was Etsy’s beloved chief executive of six years, Chad Dickerson.
Now Silverman — an Etsy board member but an unknown to most employees — stood in the Etsytorium, trying to win over a hostile crowd. His earnest introduction was an olive branch of sorts, an effort to signal that he was attuned to Etsy’s vibrant gay and transgender community, and would be respectful of the company’s distinctive culture. But to many in attendance, his remarks came off as tone deaf, and his inability to read the room foreshadowed sweeping changes that would soon transform Etsy.
The drama began last November, when Silverman joined the Etsy board and began asking tough questions of management. Soon after that, an activist investor took a stake in Etsy and called for the sale of the company. Then powerful private equity firms began buying shares, stoking fears of a takeover. The board was under pressure, and in early May abruptly fired Dickerson and installed Silverman.
On the same day as the chief executive changeover, the company announced its first layoffs. Within weeks of assuming control, Silverman shut down several projects that had been in the works for months. Not long after that, he fired another 140 employees.
It was a dizzying series of events at a company that has