Etsy-Owned Reverb Quietly Undertakes Layoffs Impacting Marketing, Design, Support & More

UPDATE 10-2-24

Chief Product Officer at Etsy-owned musical instrument marketplace Reverb, Bradford Shellhammer, has left the company just weeks after layoff announcement.

Chief Product Officer Bradford Shellhammer Exits Reverb As Etsy Growth Pressure Looms

Bradford Shellhammer, Chief Product Officer at Etsy-owned Reverb, has left the company weeks after layoffs put the future of the site in question.

Value Added ResourceLiz Morton

UPDATE 9-20-24

Sources familiar with the matter confirm this round of layoffs eliminated a little over 40 roles at Reverb. With the previous cuts last year, that puts the total headcount close to where it was when Etsy acquired the company in 2019.

Many of the impacted employees appear to be longtime Reverb staff from before the acquisition or those who joined shortly after Etsy took over, raising concerns about loss of critical institutional knowledge and experience and increasing the possibility this may be a last ditch, hail Mary effort before exploring a sell off.

Etsy-owned musical instrument marketplace Reverb is undertaking another round of layoffs amidst activist investor pressure to make "House Of Brands" strategy payoff.

While there has been no official corporate announcement, posts on LinkedIn show multiple references to "many talented coworkers" impacted across various departments including product design, marketing, customer service, and trust and safety.

The cuts appear to have been handed out swiftly, with some saying they were not even given a chance to say goodbye - instead posting their parting thoughts to coworkers online.

Chief Product Office Bradford Shellhammer carefully tiptoed around avoiding using the "L" word while putting out a call to his LinkedIn Network on behalf of "some talented people who are in search of their next role."

Reverb was acquired by Etsy in 2019 as part of their "House of Brands" strategy which also included the acquisition of fashion resale marketplace Depop and Brazilian handmade marketplace Elo7 in 2021.

The strategy has had questionable results for Etsy, as these smaller sites have yet to add significant growth to the bottom line, and Etsy sold off Elo7 last year for an undisclosed sum.

The sale led to speculation about whether Etsy may spin off Reverb and/or Depop sometime in the near future as well, especially once it become known that notorious activist investor, Elliott Management, has taken a sizeable stake in the company and a seat on the board.

Etsy Gets New Board Member As Elliott Management Takes 13% Stake In The Company

Etsy is getting a new board member this month as Elliott Management partner, Marc Steinberg, is set to join on February 5, 2024.

Value Added ResourceLiz Morton

Elliott is well known for pressing companies it takes an activist interest in to cut costs, increase revenue, and sell off parts of the business - like in 2019 when they brought their influence to bear on eBay, resulting in the sale of StubHub and their Classifieds business, as well as other changes at the company.

While a spinoff doesn't appear to be on the table just yet, Reverb is under increasing pressure to perform with cost cutting measures and a new team focused on growing revenue introduced earlier this year.

Reverb Gets New Revenue Team As Etsy Faces Pressure To Make House Of Brands Pay Off

Reverb is getting a new team focused on growing revenue as parent company Etsy faces pressure to make “House of Brands” pay off.

Value Added ResourceLiz Morton

Etsy/Reverb have not responded to request for comment to confirm the extent of the layoffs at time of publishing. Stay tuned for updates in this developing story!