Etsy cuts 12% of workforce; CEO says layoffs not AI-driven

Etsy is a website where people buy and sell handmade crafts and gifts.

The company told its workers that it is letting go of about 220 people, which is 12 out of every 100 employees.

Many of those workers were in the teams that build the Etsy website.

The boss of Etsy, Kruti Patel Goyal, said the layoffs were not caused by smart computer programs called AI.

She said AI is not the reason, even though some other tech companies say it is.

She did say AI is changing how people work, so Etsy wants to help its workers learn new skills.

The workers who are leaving will get money for at least 16 weeks and health insurance for up to a year.

Etsy also shared its money numbers for the last three months.

It earned more money than before but still lost about $47 million.

That loss is partly because Etsy sold another shopping app called Depop.