Arabic version: إيتسي تعتزم خفض نحو 220 وظيفة بعد ربع قوي
According to Cnbc, Etsy will lay off about 220 employees, or roughly 12% of its workforce, as the online marketplace seeks to simplify its organizational structure and innovate faster. Most of the cuts will affect product and engineering teams.
Chief Executive Kruti Patel Goyal, who took over at the beginning of the year, told staff in a memo that the changes would help build the organization Etsy needs for the future. The company said the layoffs are not a cost-cutting effort and were not driven by artificial intelligence. Instead, Etsy said it wants to move faster and execute with greater focus during a period of strong momentum.
The company, known for handcrafted and artisanal goods, has faced intensifying competition from Amazon and Walmart as well as newer e-commerce entrants TikTok Shop and Temu. Etsy’s business surged during the Covid-19 pandemic but struggled to sustain that momentum after lockdowns eased and consumers returned to physical stores. It has focused on unique products and on removing mass-produced, generic items from resellers.
Second-quarter sales reached $668.3 million, above the $649.1 million expected by analysts surveyed by LSEG, while sales on Etsy’s core marketplace grew 9.3%. Etsy raised its full-year gross merchandise sales outlook to mid-single-digit growth from low-single-digit growth. Active buyers fell 0.4% year over year to 87 million, while sellers rose 5.9% to 5.7 million. The company reported a net loss of $46.65 million, including discontinued operations tied to the completed sale of Depop to eBay for $1.4 billion in cash.
