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The roughly 220 job cuts, concentrated in product and engineering, come alongside a second-quarter earnings beat and raised full-year guidance
Etsy announced Wednesday that 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.
