Etsy lays off 12% of workforce in restructuring plan

Etsy, the online marketplace for handmade and vintage goods, is implementing a significant restructuring that includes laying off about 220 employees, or 12% of its total workforce. The company announced the move in a filing with the U.S. Securities and Exchange Commission on Wednesday.

“

Cost savings are a consequence of these changes, but they are not the objective. We didn't start this work with a cost reduction target or a goal of making Etsy smaller.

Chief Executive Kruti Patel Goyal stated in an internal email that the layoffs are intended to "improve coordination and speed of decision-making." The majority of affected employees are in the product and engineering departments. Patel Goyal emphasized that cost savings are a consequence, not the primary objective, and that the company will continue to invest in its long-term strategy and hire in key areas.

“

You'll continue to see us invest in the business and the team and hire in areas that are important to our long-term strategy.

She also clarified that the cuts were not driven by artificial intelligence, though she acknowledged AI's evolving role in the workplace. "As the tools available to us evolve, the skills we need, the ways we work together, and the capabilities we build across Etsy must evolve as well," Patel Goyal said.

“

At the same time, AI is changing how all of us work, and it will continue to change how we build products and solve problems.

Etsy is providing support for the departing employees, offering at least 16 weeks of severance pay, with additional pay based on tenure. They will also receive continued healthcare support for up to 12 months. Concurrently, the company's audit committee approved a new stock repurchase program authorizing the repurchase of up to an additional $2 billion of its common stock.

“

As the tools available to us evolve, the skills we need, the ways we work together, and the capabilities we build across Etsy must evolve as well.