Etsy  (ETSY - Get Report) shares were down nearly 17% premarket Wednesday after the company announced that the company was changing CEO's after reporting a first quarter loss during what it called a "challenging February."

Chad Dickerson is out as CEO of the Brooklyn-based company, replaced by board member Josh Silverman. 

The company reported a first quarter loss of $421,000 after reporting a profit of $1.2 million in the year ago period. While revenue rose 18% to $96.9 million, operating costs increased 36% to $64.3 million. 

The company said that it is cutting 80 positions to reduce costs.