Etsy layoffs: CEO Kruti Patel Goyal cuts 12% of workforce, Q2 2026

Etsy announced Wednesday that it volition destruct astir 220 positions — astir 12% of its full headcount — arsenic CEO Kruti Patel Goyal reorganizes the concern to accelerate growth. Most of the cuts volition autumn connected the merchandise and engineering teams.

Patel Goyal, who took implicit arsenic CEO astatine the commencement of this year, said the determination was not a cost-cutting effort and was not driven by artificial intelligence. "Cost savings are a effect of these changes, but they are not the objective," she said successful a missive to employees. Etsy has said the layoffs volition make $35 cardinal successful charges and beryllium wrapped up earlier the 3rd 4th closes. Once the cuts are made, Etsy volition person astir 1,600 employees, the institution said.

Departing employees volition person astatine slightest 16 weeks of severance pay, with further wage based connected tenure, continued healthcare enactment for up to 12 months, a currency outgo toward 2026 inducement compensation and near-term equity vesting, outgo for accrued and unused paid clip off, and migration support, the institution said.

The restructuring was announced alongside Etsy's second-quarter net release. Revenue from continuing operations roseate 6.2% to $668.3 million. Gross merchandise income connected the halfway Etsy marketplace grew 7.5%, and marketplace gross accrued 9.3%. Etsy raised its full-year gross merchandise income guidance to mid-single-digit percent growth, up from its anterior outlook of low-single-digit growth.

Continuing-operations nett came successful astatine $114.3 million, oregon 98 cents per share, against $45.6 million, oregon 39 cents per share, successful the year-ago quarter. The 98-cent effect topped the 75-cents-per-share statement estimate, according to The Wall Street Journal. The institution recorded a nett nonaccomplishment of $46.7 cardinal for the quarter, driven by a $161 cardinal nonaccomplishment from discontinued operations related to the merchantability of its Depop secondhand covering level to eBay successful July for $1.4 billion.

The committee approved a caller $2 cardinal share-repurchase program, with a information of the backing expected to travel from the proceeds of the Depop sale, the institution said.

Etsy bushed first-quarter gross expectations and reported the archetypal sequential summation successful progressive buyers successful 2 years, with Patel Goyal astatine the clip saying the institution had "more conviction" successful its maturation priorities. For the 2nd quarter, the institution reported 87 cardinal progressive buyers, down 0.4% from a twelvemonth earlier but up sequentially, alongside 5.7 cardinal sellers, a 5.9% year-over-year increase, the institution said.

Patel Goyal said the restructuring reflects wherever Etsy needs to spell alternatively than its existent performance. "The advancement we've made gives america the accidental to enactment from a presumption of strength," she wrote successful the worker letter. "This means we tin signifier our aboriginal proactively alternatively than respond to it."