Etsy Cuts 220 Staffers Amid Bid to Streamline Business
Etsy is laying off around 12% of its staff, roughly 220 employees, to streamline its business and position for growth. The move comes as the online marketplace looks to simplify its organizational structure and innovate faster in a competitive e-commerce industry.
The job cuts will mainly impact Etsy's product and engineering teams. In a memo to staff, CEO Kruti Patel Goyal said the layoffs aim to help the company 'lean in during a period of strong momentum so that we can move faster and execute with even greater focus.'
Etsy has faced pressure to compete with larger e-commerce players like Amazon and Walmart, as well as newer entrants such as TikTok Shop and Temu. The company has been working to double down on its reputation for unique products, while weeding out mass-produced items from resellers.
Despite the layoffs, Etsy's sales have shown signs of improvement. For the second quarter, sales came in at $668.3 million, beating analysts' expectations. The company also boosted its full-year guidance for gross merchandise sales, projecting mid-single-digit growth.