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Etsy cuts 220 jobs, authorizes additional $2 billion stock buyback

Etsy cuts 220 jobs, authorizes additional $2 billion stock buyback

The online marketplace is cutting about 12% of staff, mainly in product and engineering, while management says the move is unrelated to artificial intelligence and part of a refocus on Etsy's core business.

Fact Check
Etsy's official 10-Q SEC filing confirms the ~12% / ~220 employee workforce reduction approved August 3, 2026, and a new $2 billion stock repurchase authorization. CNBC confirms the cuts target product and engineering teams and that CEO Kruti Patel Goyal framed the move as unrelated to AI/cost-cutting and part of refocusing on Etsy's core marketplace. WSJ independently confirms the cuts were not driven by AI and reflect a focus on the core marketplace. Every element of the claim is corroborated by primary (SEC filing) and reputable secondary sources.
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Summary

Etsy is cutting about 220 employees, or 12% of its workforce, mainly in product and engineering, as the online marketplace restructures to move faster and sharpen its focus on the core Etsy platform. Chief Executive Officer Kruti Patel Goyal said the reductions were not driven by cost-cutting targets or artificial intelligence, arguing that changing buyer discovery patterns, more capable seller tools and rising customer expectations require a more focused organization. The announcement came with second-quarter results showing sales rose 6.2% to $668.3 million, while Etsy said earnings from continuing operations increased to 98 cents a share from 39 cents; the company had also previously disclosed an adjusted loss of 36 cents a share versus adjusted earnings of 25 cents a year earlier, partly reflecting the June 2025 sale of Reverb. Etsy also approved an additional $2 billion stock buyback and has been selling non-core assets, including Depop and Reverb, as it refocuses on its main marketplace.

Terms & Concepts
  • Stock buyback: A company repurchasing its own shares, typically to return capital to shareholders or reduce the number of shares outstanding.
  • Continuing operations: The part of a company's business that remains after disposals or discontinued units, used to show ongoing performance.
  • Adjusted loss per share: A per-share earnings measure that excludes certain items to present a company's underlying results as defined by management.