Etsy lays off 12% of workforce, about 220 employees, as part of restructuring plan

Published Aug 5, 08:07 PM UTC

Etsy Inc. announced it is laying off approximately 220 employees, or 12% of its workforce, as part of a restructuring plan aimed at improving coordination and decision-making speed. The layoffs will primarily affect product and engineering departments, according to CEO Kruti Patel Goyal. In an email to employees, Patel Goyal stated that cost savings are a consequence but not the objective, and that the cuts were not driven by AI, though AI is changing how the company works. Laid-off workers will receive at least 16 weeks of severance pay, up to 12 months of healthcare support, and other benefits. The company's audit committee also approved a new $2 billion stock repurchase program. Etsy reported its quarterly results on Wednesday after market close.