HCM & HRIS

Etsy lays off 12% of workforce as part of restructuring plan

August 6, 2026
www.ETHRWorld.com
No Comments
  • Published On Aug 6, 2026 at 07:48 AM IST

Patel Goyal said ​that the cuts also werent driven by AI />By Arriana ​McLymore<br><br>NEW YORK, NY, – Crafting marketplace Etsy ​Inc. is laying off approximately 220 employees, or 12% of its workforce, as part of a restructuring plan it hopes will ” and=”” captionrendered=”1″ commission=”” coordination=”” data-src=”https://etimg.etb2bimg.com/photo/132979313.cms” exchange=”” filing=”” height=”442″ improve=”” loading=”eager” of=”” on=”” said=”” securities=”” speed=”” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” the=”” u.s.=”” wednesday.=”” width=”590″></img></p> <p>The layoffs will ​mostly impact workers in the product and engineering department, Chief Executive Kruti Patel ​Goyal said in an email to employees.</p> <p>“Cost savings are a consequence of these changes, but they are not the objective. We ​didn’t start this work with a ⁠cost reduction ‌target or a goal of making Etsy smaller,” ​she said. “You’ll ​continue to see us invest in the business ⁠and the team and hire in areas that ​are important to our long-term strategy.”</p> <p>Patel Goyal said ​that the cuts also “weren’t driven by AI.”</p> <p>“At the same time, AI is changing how all of us work, and it will continue to change how we build products and solve problems,” Patel Goyal said. “As the tools available to us evolve, the ‌skills we need, the ways we work together, and the capabilities we build across Etsy must evolve ​as well.”</p> <p>Laid-off ​workers will receive ⁠at least 16 weeks of severance pay, with additional pay based on tenure, continued healthcare support for up to 12 months and other ​benefits.</p> <p>The company’s audit committee also approved a new stock repurchase program that authorizes Etsy to repurchase up to an additional $2 billion of its common stock, according to the SEC filing.</p> <p>Etsy reported results on Wednesday after the market close.</p> <p>(Reporting by Arriana McLymore in New York City; Editing by Aurora Ellis) </p> <div> <div> <ul> <li><a href=Reuters

  • Published On Aug 6, 2026 at 07:48 AM IST

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

All about industry right on your smartphone!

  • Download the App and get the Realtime updates and Save your favourite articles.

Leave a Reply

Your email address will not be published. Required fields are marked *