Etsy to cut 12 percent of its workforce

Marketplace giant Etsy has announced plans to cut around 220 jobs, representing approximately 12 percent of its workforce, as the online marketplace looks to simplify its structure and accelerate growth.

The layoffs were announced alongside the company’s second-quarter results, according to CNBC, with CEO Kruti Patel Goyal telling employees that the changes would help build “the organisation we believe Etsy needs for the future”.

Most of the affected roles are expected to be within Etsy’s product and engineering teams. The company said the cuts are not intended as a cost-saving measure, but are designed to help it operate with greater focus and speed.

The move comes as Etsy continues efforts to strengthen its position in a competitive e-commerce market, facing pressure from larger platforms including Amazon and Walmart, as well as newer players such as TikTok Shop and Temu.

Etsy reported second-quarter sales of 668.3 million dollars, ahead of analyst expectations, while sales across its core marketplace increased 9.3 percent. The company also raised its full-year gross merchandise sales outlook.