BROOKLYN, N.Y. – Etsy is cutting about 220 jobs, or roughly 12% of its workforce, in a restructuring focused primarily on product and engineering.
The online marketplace expects to have about 1,600 employees after the reduction, according to its second-quarter materials. The company said it expects the plan to be substantially complete by the end of the third quarter.
CEO Kruti Patel Goyal told employees that the goal was to reshape Etsy for its next phase of growth, not to meet a cost-cutting target. She said the company would continue hiring and investing in areas tied to its long-term strategy.
Goyal also addressed AI directly. The decisions were not driven by AI, she wrote in a company memo, and Etsy’s future would continue to depend on human creativity, judgment and expertise.
At the same time, she said AI is changing how employees work and how the company builds products and solves problems. Etsy expects the skills it needs, the way teams work together and the capabilities it develops to change as the tools evolve.
The company’s shareholder letter said Etsy intends to deepen expertise in product, engineering and customer operations, with a particular focus on machine learning skills. That combination makes the restructuring a useful example of how companies may separate the direct cause of a job reduction from the technology shaping the organization that follows.