Yahoo Finance
Etsyannounced Wednesdaythat it will eliminate around 220 positions — about 12% of its total headcount — as CEO Kruti Patel Goyal reorganizes the business to accelerate growth.
Most of the cuts will fall on the product and engineering teams.
Patel Goyal, who took over as CEO at the start of this year, said the decision was not a cost-cutting effort and was not driven by artificial intelligence.
"Cost savings are a consequence of these changes, but they are not the objective," she said in a letter to employees.
Etsy has said the layoffs will generate $35 million in charges and be wrapped up before the third quarter closes.
Once the cuts are made, Etsy will have about 1,600 employees, the company said.
Departing employees will receive at least 16 weeks of severance pay, with additional pay based on tenure, continued healthcare support for up to 12 months, a cash payment toward 2026 incentive compensation and near-term equity vesting, payment for accrued and unused paid time off, and immigration support, the company said.
The restructuring was announced alongside Etsy'ssecond-quarter earnings release.
Revenue from continuing operations rose 6.2% to $668.3 million.
Gross merchandise sales on the core Etsy marketplace grew 7.5%, and marketplace revenue increased 9.3%.
Etsy raised its full-year gross merchandise sales guidance to mid-single-digit percentage growth, up from its prior outlook of low-single-digit growth.
Continuing-operations profit came in at $114.3 million, or 98 cents per share, against $45.6 million, or 39 cents per share, in the year-ago quarter.
| Product | Price | Change |
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