Etsy announced it will eliminate around 220 positions, about 12% of its total headcount, as CEO Kruti Patel Goyal reorganizes the business to accelerate growth. Most of the cuts will fall on the product and engineering teams. Patel Goyal, who became CEO at the start of this year, said the decision was not a cost-cutting effort and was not driven by artificial intelligence, calling cost savings a consequence rather than the objective. The layoffs will generate $35 million in charges and be completed before the third quarter closes, leaving Etsy with about 1,600 employees. Departing employees will receive at least 16 weeks of severance pay, continued healthcare support for up to 12 months, and other benefits. The restructuring was announced alongside second-quarter earnings, with revenue from continuing operations rising 6.2% to $668.3 million and continuing-operations profit of $114.3 million, or 98 cents per share, beating the 75-cent consensus estimate. The company also reported a net loss of $46.7 million driven by a $161 million loss from discontinued operations related to the sale of Depop to eBay for $1.4 billion, and the board approved a new $2 billion share-repurchase program.
Etsy, Inc.Restructuring with layoffs and $35M charges, but Q2 earnings beat and new $2B buyback; net loss from Depop sale.
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