Dive Brief:

• E-commerce company Etsy announced on Thursday that it appointed Lanny Baker, a former Yelp executive, to become its CFO as part of a series of changes in its upper ranks.
• Baker will succeed Rachel Glaser, who announced her decision to retire in July, according to a press release. In another move, Kruti Patel Goyal, head of Etsy's Depop subsidiary, has been appointed president and chief growth officer of the overall company.
• Baker’s “financial acumen, operational skills and growth orientation are going to be critical ingredients as he partners with me, Kruti and the rest of our executive leadership,” Etsy CEO Josh Silverman said in the release.

Dive Insight:

Baker, 57, will receive a base salary of $525,000 per year and be eligible to participate in Etsy’s Management Cash Incentive Plan, with an annual target of 90% of his base salary, according to a securities filing. Baker will also receive a one-time sign-on bonus of $140,000 and be eligible to participate in the Etsy Executive Severance Plan, the filing said.

His appointment will become effective on Jan. 1, the company said.

The leadership shakeup comes in the wake of diminishing sales at Brooklyn, New York-based Etsy, which provides an online marketplace for buying and selling handmade or vintage items and craft supplies.

The company’s gross merchandise sales — the total value of items sold on its platforms — fell to $2.9 billion in the third quarter, down 4.1% year-over-year, according to results released on Oct. 30. Executives attributed the decline in part to continued macro-economic headwinds.

“While we're not satisfied with the lack of GMS expansion, we take comfort that if this is what our business can deliver in an extremely challenging period, the future for Etsy will be bright indeed,” Glaser said during an earnings call at the time.

Glaser plans to remain with Etsy as an advisor through June 30, 2025 to ensure a smooth transition, according to the Thursday release.

Baker most recently worked at events platform operator Eventbrite, serving as chief operating and financial officer from August to November of this year after serving as CFO beginning in September 2019.

Prior to joining Eventbrite, Baker served as CFO of Yelp from May 2016 to August 2019.

Etsy also announced Thursday Brad Minor, currently the company’s chief brand officer, will serve as chief marketing officer, replacing Raina Moskowitz, who is exiting for a CEO role at another company. In addition, Etsy said it will initiate a search for a new chief technology officer to succeed Rachana Kumar, who will depart to pursue new opportunities.