Etsy is laying off about 220 people, roughly 12% of its staff, under a restructuring the company approved this week that falls mainly on the product and engineering organization and leaves it with around 1,600 employees. Etsy expects to book about $35 million in charges, most of it severance and benefits. In a shareholder letter the company said this isn’t primarily a cost exercise but a move to flatter teams with wider remits, fewer handoffs, and quicker decisions, and a spokesperson said AI wasn’t a factor. The announcement landed with second-quarter results showing $668 million in revenue and $2.6 billion in gross merchandise sales across the Etsy marketplace.
