Etsy is cutting approximately 12% of its workforce—around 220 positions—whilst authorising a $2 billion share-repurchase programme. The redundancies, focused on product and engineering teams, will leave the company with roughly 1,600 employees. Etsy expects about $35 million in severance and related charges, with the restructuring largely complete by the end of the third quarter. Chief executive Kruti Patel Goyal said cost savings were not the objective, stating the company did not start with a reduction target. The new buyback programme carries no expiration date and sits alongside $578.2 million remaining under a previous authorisation. Etsy's second-quarter revenue rose 6.2% to $668.3 million, though active buyers slipped 0.4% to approximately 87 million.

Etsy's valuation presents mixed signals for investors. The stock has rebounded over the past year after a 55.7% decline over five years, but its current price around $85.86 shows conflicting value indicators. A Discounted Cash Flow analysis suggests Etsy trades at a 38.5% discount to its intrinsic value of roughly $140 per share, based on $676.9 million in free cash flow. However, the company passes only two of six broader valuation tests, with earnings multiples indicating a richer price. Etsy is restructuring through layoffs affecting 12% of staff and selling Depop for approximately $1.4 billion in cash. These moves aim to improve efficiency and support capital returns, though execution risks and competition from Amazon and TikTok Shop remain concerns. The valuation debate centres on whether the DCF upside or earnings-based caution better reflects Etsy's true worth.

Etsy is laying off approximately 220 employees, or 12% of its workforce, as part of a restructuring plan aimed at improving coordination and decision-making speed, the company announced in a Securities and Exchange Commission filing on Wednesday. The cuts will primarily affect workers in the product and engineering departments. Chief Executive Kruti Patel Goyal told employees the restructuring was not driven by cost savings or artificial intelligence, though she acknowledged AI is changing how the company works. Affected workers will receive at least 16 weeks of severance pay, with additional compensation based on tenure, and continued healthcare support for up to 12 months. The company's audit committee also approved a new stock repurchase programme authorising Etsy to buy back up to an additional $2 billion of its common stock.