Etsy is laying off about 220 employees, representing 12 percent of its workforce, as part of a company restructuring plan. The company stated in a Wednesday filing with the U.S. Securities and Exchange Commission that the move aims to improve coordination and decision-making speed.
Chief Executive Officer Kruti Patel Goyal told staff in an email that the cuts will mainly affect workers in the product and engineering department. Patel Goyal stated that cost savings are a result of these changes rather than the primary goal, adding that Etsy did not begin the process to reduce costs or shrink the business.
Severance and artificial intelligence
Patel Goyal said the cuts are not driven by artificial intelligence, though she noted that AI tools are changing how employees build products and solve problems across the company. She added that Etsy will continue to hire staff and invest in areas critical to its long-term strategy.
Departing employees will receive at least 16 weeks of severance pay, additional compensation based on length of service, and up to 12 months of continued healthcare coverage. The company's audit committee also approved a new share buyback program.
