Etsy to cut 12% of workforce in restructuring push

The online marketplace Etsy said Wednesday it will cut about 12% of its workforce as part of a restructuring designed to simplify its organization and accelerate growth.

Etsy said about 220 employees would be affected, with most job cuts concentrated in its product and engineering teams.

Chief Executive Officer Kruti Patel Goyal said the changes would enable Etsy to operate with greater speed and focus during its next phase of growth.

The company said the layoffs were not primarily intended to reduce costs and were not driven by artificial intelligence.

Etsy has faced intensifying competition from Amazon, Walmart, TikTok Shop and Temu as it seeks to strengthen its position as a marketplace for handmade, vintage and other distinctive products.

The announcement accompanied the company's second-quarter earnings report.

Revenue rose 6.2% from a year earlier to $668.3 million, topping analysts' expectations of about $649 million.

Etsy reported an adjusted loss of $0.36 per share, compared with adjusted earnings of $0.25 per share a year earlier.

The company has also been divesting non-core businesses to focus on its flagship marketplace, including the recent $1.2 billion sale of secondhand fashion platform Depop to eBay.