Etsy Cuts 220 Jobs After Q2 Revenue Beats Estimates by $19 Million
Updated
Updated · CNBC · Aug 5
Etsy Cuts 220 Jobs After Q2 Revenue Beats Estimates by $19 Million
1 articles · Updated · CNBC · Aug 5
Summary
220 Etsy employees — about 12% of the workforce — will be laid off, with most cuts hitting product and engineering as CEO Kruti Patel Goyal reshapes the company for faster execution.
Q2 revenue of $668.3 million topped LSEG estimates of $649.1 million, core marketplace sales rose 9.3%, and Etsy said the layoffs are meant to simplify the organization rather than cut costs or respond to AI.
The company also raised full-year gross merchandise sales guidance to mid-single-digit growth and forecast Q3 GMS of $2.53 billion to $2.58 billion, above the $2.49 billion consensus.
The restructuring comes as Etsy tries to sustain post-pandemic growth, sharpen its focus on unique handmade goods, and fend off pressure from Amazon, Walmart, TikTok Shop and Temu.
That focus has included portfolio pruning: Etsy sold Depop to eBay for $1.2 billion last month after previously divesting Reverb.