> Etsy to Cut 12% of Workforce, mostly in engineering division

Etsy is cutting roughly 12% of its workforce as it tries to adapt its marketplace to changing online-shopping habits.

The ecommerce platform is laying off about 220 employees, mostly in its product and engineering division. The cuts weren’t driven by cost-cutting initiatives or artificial intelligence, Chief Executive Kruti Goyal said in a letter to employees Wednesday.

Goyal said Etsy needs to evolve alongside its customers, who are using new and different tools to discover the products Etsy sells. That evolution will involve operating with smaller, faster teams and using revenue to invest in more complex projects, she said.

“Buyers are discovering products in new ways. Sellers have access to increasingly powerful tools to build their businesses. And the expectations they have of Etsy continue to rise,” Goyal said.

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