Etsy to lay off about 220 employees in restructuring

E-commerce platform Etsy is reducing its workforce by approximately 12%, a move that will impact around 220 employees. The company announced the decision as part of a restructuring plan approved to better align its organizational structure with long-term strategic priorities. This initiative aims to simplify the company's structure, enhance coordination, and accelerate decision-making processes. The reduction in staff is expected to bring Etsy's total employee count to about 1,600. The restructuring and other exit costs are estimated to incur approximately $35 million in expenses, primarily related to severance, employee benefits, and associated costs. The company anticipates completing the majority of this plan by the end of the third quarter of 2026. In a message to employees, Etsy CEO Kruti Patel Goyal indicated that the layoffs would predominantly affect product and engineering teams. Goyal emphasized that the primary goal of the restructuring is not cost reduction, although cost savings are a consequence. "We did not start this work with the goal of reducing costs or shrinking Etsy," she stated, adding that the company will continue to invest in its workforce and hire in strategically important areas. She also clarified that the decision was not driven by artificial intelligence, asserting that the company's future relies on the creativity, judgment, and expertise of its employees, and the opportunity lies in integrating talented people with strong new technologies, not replacing one with the other.