Etsy looks to be just fine. Sales grew 33% for 2016 vs 2015. Their operating loss is down to a very small trickle at $2m for the latest quarter. To go with $275m in cash.
They appear to have a very nice business that's trading for a reasonable four times sales and likely heading toward profitability. What's the problem? Cutting bloat is exactly what they should be doing, it'll drive them to profitability faster.
But I would warn them, based on prior experience, that having a pile of cash can turn you into a target for takeover from someone who wants your cash. Once the companies merge, all that cash becomes 'our' cash and they can use it to buy themselves a couple extra years of burn rate.
it's still in a very precarious position - if they open too much to resellers and large manufacturers people will go back to the more convenient alternative - amazon.
More convenient, better experience, better search, better customer support, better shipping, more reviews, etc. etc.
I know this is a dead horse here but Etsy needs to go back to it's roots or die. I would use eBay or alibaba before Etsy if they want to sell cheaply manufactured goods.
They appear to have a very nice business that's trading for a reasonable four times sales and likely heading toward profitability. What's the problem? Cutting bloat is exactly what they should be doing, it'll drive them to profitability faster.