Investing.com -- Shares in Etsy (NASDAQ:ETSY) fell in premarket trading on Wednesday after analysts at Goldman Sachs downgraded their rating of the craft supplies-focused e-commerce group.
In a note to clients lowering their outlook for the company to "neutral" from "buy," the Goldman analysts said that Wall Street estimates "fully capture [Etsy's] growth potential in the years ahead."
The change comes after New York-based Etsy announced in a December regulatory filing that it would reduce headcount by roughly 11% in a bid to slash costs during a time of softer demand for handcrafted items. Etsy also unveiled a shake-up of its leadership team that led to several executives, including Chief Marketing Officer Ryan Scott, leaving the business.
Approximately 225 employees will be lost in the restructing push, Etsy estimated in the filing, adding that the move will deliver "meaningful operational efficiencies and [...] savings."
About $25 million-$30 million in charges were projected to be incurred, Etsy added. The overhaul was projected to be substantially complete by the end of the first quarter of 2024.