Etsy to cut 12pc of workforce in search of ‘flatter, faster teams’

Online marketplace Etsy plans to reduce its workforce by 12%, laying off around 220 employees, according to the company's CEO Kruti Patel Goyal. The restructuring aims to create flatter, faster teams that can solve more complex problems more efficiently, rather than a cost-cutting measure. Goyal emphasized that the restructuring targets the product and engineering groups, with a focus on expanding machine learning expertise.

The move will save Etsy approximately $35 million in severance and associated costs, with the process expected to be completed by the end of the third quarter. Etsy's CFO, Lanny Baker, stated that the restructuring will lower operating costs in the near term and position the company for future growth. While there have been rumors linking the layoffs to AI, Goyal clarified that the decision is not driven by AI but rather the changing nature of work due to AI advancements. Etsy, founded in 2005, has offices in New York, Dublin, London, and Mexico City.