E-commerce marketplace Etsy has announced plans to eliminate approximately 220 jobs, representing roughly 10% of its workforce, as part of a major organizational restructuring led by CEO Kruti Patel Goyal. The layoffs primarily affect employees in product, engineering, design, research, and analytics teams. According to the company, the move is intended to streamline decision-making, improve collaboration, and accelerate product development rather than reduce costs.
More Focused Structure Needed: CEO
In a message to employees, CEO Kruti Patel Goyal stated that Etsy is redesigning its organizational structure to remove complexity and create smaller, more agile teams. She noted that the company has grown significantly over the years, leading to overlapping responsibilities and slower execution across key business functions. The reorganization is expected to reduce the number of management layers and improve coordination between engineers, product, and design departments. Management hopes the restructure will enable Etsy to deliver new features faster and respond more quickly to changing market demands.
Etsy Seeks Long-Term Growth
This move comes at a time when Etsy is trying to build on its marketplace after experiencing sluggish consumer spending and reduced demand for discretionary items in some key markets. The company has been under pressure from shifting shopping behaviors and increased competition from other online players. Etsy stated that the restructuring is designed to position the company for its next phase of growth by improving operational efficiency and increasing the speed at which products are developed and delivered. Affected employees will receive severance packages, extended healthcare benefits where applicable, career transition assistance, and support in finding new employment opportunities.
Focus on Innovation and Marketplace Expansion
Etsy emphasized that it remains committed to investing in its marketplace, seller tools, and customer experience. The company plans to develop new features that help independent sellers connect with buyers and provide an improved search and discovery system. Unlike cost-saving measures, Etsy’s latest steps are strategic actions aimed at simplifying internal processes and enhancing effectiveness as the global e-commerce industry becomes increasingly competitive.