Etsy has approved a restructuring plan under which the US e-commerce company will cut its workforce by around 220 roles, equivalent to 12% of employees.
The move aims to bring the organisation in line with the company’s long-term strategic priorities, including a simplified structure aimed at improved coordination and faster decision-making.
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Once the cuts take effect, Etsy’s headcount is expected to stand at around 1,600 people.
The company anticipates charges of approximately $35m linked to the plan, made up mostly of cash costs for severance, employee benefits and related items.
These charges are expected to be incurred, and the restructuring largely finished, by the close of the third quarter of 2026.
The plan was approved by the audit committee of Etsy’s Board of Directors, acting under authority delegated by the board.
In a separate move, the audit committee also cleared a new share buyback programme, giving Etsy authorisation to repurchase up to a further $2bn of its common stock.
The authorisation carries no expiry date and can be altered, paused or ended by the board at any point.
According to Etsy, the scale and timing of buybacks will hinge on factors such as its share price, trading volumes, broader market conditions and working capital needs.
Repurchases may be carried out via open-market deals, privately negotiated transactions, tender offers, or a combination of these approaches.
The job cuts were unveiled alongside Etsy’s second-quarter (Q2) results for the period ended 30 June 2026.
Quarterly revenue came in at $668.3m, up from $629.1m a year earlier, while operating income climbed to $125.2m from $94.1m over the same period.
The company recorded a net loss of $46.6m for the quarter, a reversal from net income of $28.8m in Q2 2025.
This was driven by a net loss from discontinued operations of $160.9m, sharply higher than $16.7m a year earlier, linked to Etsy’s sale of Depop to eBay.
eBay completed its acquisition of the fashion resale platform late last month, finalising a deal originally signed with Etsy in February.
For the first half of 2026, revenue rose to $1.29bn from $1.24bn a year earlier, while operating income improved to $245.1m from $90.2m.
Etsy reported net income of $23.03m for the six-month period, against a net loss of $23.2m in the same period of 2025.
In a letter to shareholders, Etsy CEO Kruti Patel Goyal said: “The results we are reporting today reinforce our conviction that this focus is translating into stronger marketplace fundamentals and accelerating growth.
“We are encouraged by our progress, and increasingly confident in our ability to create long-term shareholder value, reflected in our improved outlook for 2026 and new $2bn share repurchase authorisation.”
