Etsy to cut about 12% of workforce, roughly 220 roles

Published Aug 6, 07:48 PM UTC

On August 6, 2026, Etsy announced it would cut about 12% of its workforce (roughly 220 roles), primarily in product and engineering, despite reporting better-than-expected Q2 results. The layoffs are framed as a strategic shift to streamline operations and accelerate innovation amid rising competition. However, investors reacted negatively due to execution risks and a $35 million restructuring charge. Etsy's stock, up 50% year-to-date, is testing its 20-day moving average. CFO Charles Baker recently sold shares, and active buyers fell 0.4% year-over-year to 87 million. Wall Street rates Etsy as 'Hold' with a mean price target of $77.52, suggesting potential downside.