Etsy lays off 12% of staff to streamline operations and drive growth

Published Aug 5, 08:05 PM UTC

Etsy announced on Wednesday that it is laying off approximately 220 employees, or 12% of its workforce, as part of a strategic move to simplify its organizational structure and accelerate innovation. The layoffs, announced alongside second-quarter earnings, primarily affect product and engineering teams. CEO Kruti Patel Goyal stated the cuts are not cost-driven but aim to position the company for future growth amid increasing competition from Amazon, Walmart, TikTok Shop, and Temu. Etsy reported Q2 sales of $668.3 million, up 6.2% year-over-year, beating analyst expectations. The company has also been divesting non-core assets, including the sale of Depop to eBay, to focus on its core marketplace. Etsy is enhancing search capabilities and marketing its unique, handcrafted offerings to differentiate itself from mass-market rivals.