Etsy lays off 12% of workforce in restructuring

Etsy Inc. is implementing a significant restructuring that includes laying off approximately 220 employees, which constitutes 12% of its total workforce. The company stated in a filing with the U.S. Securities and Exchange Commission that the primary goal of this restructuring is to "improve coordination and speed of decision-making."

In an internal email to employees, Chief Executive Kruti Patel Goyal specified that the layoffs would predominantly impact workers within the product and engineering departments. She emphasized that cost savings are a consequence, not the objective, and that the company will continue to invest in its business and team, hiring in areas crucial for its long-term strategy. Patel Goyal also clarified that the cuts were not driven by artificial intelligence, though she acknowledged AI's evolving role in work and product development.

Employees affected by the layoffs will receive a comprehensive support package, including at least 16 weeks of severance pay, with additional compensation based on their tenure. They will also continue to receive healthcare support for up to 12 months, along with other benefits.

Concurrently, Etsy's audit committee has approved a new stock repurchase program, authorizing the company to buy back up to an additional $2 billion of its common stock. The company is scheduled to report its financial results on Thursday before the market opens.