Etsy is cutting 12 per cent of its workforce as part of a restructure following the sale of Depop.
The overhaul will affect around 220 employees, reducing Etsy’s workforce to approximately 1,600 people. Most of the cuts will fall across its product and engineering teams.
Etsy expects the restructuring to be largely completed by the end of its third quarter and will take charges of about $35m (£26m), primarily covering severance payments and employee benefits.
Chief executive Kruti Patel Goyal said the move was intended to simplify the business and speed up decision-making, rather than meet a predetermined savings target.
She added that the cuts were not driven by artificial intelligence, although the technology is changing how Etsy develops products and the skills it needs.
Affected employees will receive at least 16 weeks of severance pay, alongside additional payments based on their length of service and up to 12 months of healthcare support.
Etsy refocuses on core marketplace
Etsy recently completed the $1.2bn (£890m) sale of fashion resale platform Depop to eBay last month.
The deal leaves the group more focused on its flagship marketplace for handmade, personalised and vintage goods.
Etsy marketplace gross merchandise sales rose 7.5 per cent to $2.58bn (£1.9bn) during its second quarter, while revenue increased 9.3 per cent to $668.3m (£496m).
However, active buyer numbers slipped 0.4 per cent to just under 87m, highlighting the challenge facing the platform as it looks to attract new shoppers and encourage existing customers to buy more frequently.
Active sellers increased 5.9 per cent to 5.7m, while spending per buyer rose 2.8 per cent to $124 (£92) over the previous 12 months.
Etsy said it would continue investing and recruiting in priority areas despite the job cuts, as it works to improve product discovery, personalisation and the overall shopping experience.
It has also approved a new share-buyback programme worth up to $2bn (£1.5bn).
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