Etsy Cuts 12% of Workforce as Tech Industry Faces AI Spending Pressure

Etsy has laid off 220 employees, or about 12% of its workforce, primarily in product and engineering roles, Andrew Nusca reported for Fortune Tech.

Etsy is reducing its workforce as the online marketplace adjusts its operations amid changing conditions in the technology sector. [Photo: SYLVAIN]

The job cuts came as the online marketplace and other technology companies continued to adjust their operations amid rapid changes in artificial intelligence and technology spending.

In other technology news, Figma shares fell 15% despite the company reporting better-than-expected second-quarter revenue and issuing an upbeat third-quarter outlook, as investors reacted to its aggressive AI investments.

Meta released Muse Code, a terminal-based coding agent powered by its multimodal reasoning model Muse Spark, in beta.

Sandisk shares fell 5% after the company issued a weaker-than-expected first-quarter revenue forecast, despite continuing demand for its memory products outpacing supply.

Separately, a Canadian man pleaded guilty to hacking Snowflake in 2024, an attack that reportedly compromised data associated with 165 companies.