Etsy announced on Wednesday it is laying off approximately 220 employees.
The reduction represents 12% of the company's total workforce.
Cuts will primarily affect the product and engineering teams.
CEO Kruti Patel Goyal stated in a staff memo that the layoffs aim to improve coordination.
The restructuring is designed to accelerate decision-making rather than cut costs.
Etsy reported second-quarter revenue of $668.3 million.
This figure represents a 6.2% year-over-year increase.
The results surpassed analyst expectations of $649.1 million.
The company authorized an additional $2 billion for its stock buyback program.
Shares rose slightly in after-hours trading following the announcement.