In early May, (NYSE: SHOP) surprised Wall Street by announcing aggressive cost-cutting that sharply reduced its head count. The move was aimed at helping return the business to sustainably positive cash flow and earnings.

It worked, and these improvements were amplified by accelerating demand. The stock went on to nearly double from the time of that announcement through mid-December.

Etsy (NASDAQ: ETSY) is hoping to walk a similar path. The e-commerce marketplace specialist announced on Dec. 13 that it is laying off a large part of its workforce. As with Shopify, executives said their goal is to make the company more nimble, focused, and better positioned for faster growth.

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Source Fool.com