Etsy attributes layoffs to strategic refocusing, distancing itself from AI-driven job cuts seen at other tech firms.
Etsy Inc. reduced its workforce by 12%, or 220 employees, primarily in product and engineering roles, while reporting a 6% revenue increase to $668 million. The company emphasized the move was part of a strategic shift to refocus on core operations, explicitly ruling out AI as a factor in the decision.
Recent layoffs at other tech firms, including Block and Oracle, have been tied to AI-driven productivity gains, with Block cutting 40% and Oracle 21,000 jobs earlier this year. Analysts and skeptics debate whether these reductions are genuinely tied to AI advancements or simply cost-cutting measures.
Etsy’s announcement contrasts with broader industry trends, where AI-related workforce reductions have raised concerns about potential long-term economic impacts, including rising unemployment rates.