Etsy to cut 12% of workforce in restructuring after strong earnings

Etsy Inc. announced a restructuring that will eliminate about 220 jobs, roughly 12% of its staff. The layoffs mainly target product and engineering teams and are intended to improve coordination and speed of decision‑making. Chief executive Kruti Patel Goyal said the cuts are not driven by a cost‑reduction target or by artificial‑intelligence pressures, although AI will continue to shape how the company works. Affected employees will receive at least 16 weeks of severance, additional compensation based on tenure and up to 12 months of health‑care coverage. The audit committee also approved a new stock‑repurchase program authorising up to $2 billion of additional buybacks. The move follows Etsy’s second‑quarter results, which showed revenue of $668.3 million, net income of $114.3 million and gross merchandise sales of $2.6 billion, and comes as the company completes the sale of its Depop unit to eBay. The restructuring is expected to be finished by the end of the third quarter, at a cost of about $35 million.