Etsy names former head of Depop, Kruti Patel Goyal, as its new CEO

Etsy has announced a significant leadership change as its long-standing CEO, Josh Silverman, prepares to step down by the year's end. The company has appointed Kruti Patel Goyal, who has served as Etsy’s president and chief growth officer, as its new CEO. Silverman, who has been at the helm for the past eight years, will transition to the role of executive chairman. Goyal's tenure at Etsy spans over a decade, during which she briefly led the social-commerce platform Depop, a company Etsy acquired four years ago. Her recent experience and leadership skills are expected to be crucial in steering Etsy through its current challenges, particularly as the marketplace seeks to rejuvenate its growth trajectory. Recent statistics reveal that Etsy's active buyer base declined by 5% to 86.6 million in the third quarter compared to the same period last year. The company faced significant hurdles, including a user boycott in July stemming from controversies over merchandise sales on its platform. Additionally, the number of sellers on Etsy fell by 10.9% to 5.5 million. In terms of financial performance, Etsy reported a 2.4% drop in gross merchandise sales (GMS), totaling $2.4 billion for the quarter. Conversely, Depop has shown robust growth, with active sellers increasing by 40% to 3 million and active buyers rising by 38% to 6.6 million. Depop’s GMS also saw a remarkable surge of 39.4%, reaching $292.1 million. Following the leadership announcement, Etsy's stock experienced a nearly 9% decline, reflecting investor concerns about the future direction of the company.