Etsy said Wednesday that it will eliminate about 220 jobs, or roughly 12% of its workforce, as the online marketplace restructures around a simpler organization. The stock is down 1.6% in after-hours trading.

The company expects head count to fall to about 1,600 and plans to record approximately $35 million in charges, largely for severance, benefits, and related costs. The restructuring should be mostly completed by the end of the third quarter.

The board's audit committee approved the plan on Aug. 3, saying it is intended to align Etsy with its long-term priorities and improve coordination and decision-making speed. Etsy also authorized an additional $2 billion in share repurchases, with no expiration date.

The cuts arrive alongside improving financial results reported earlier on Wednesday. In the second quarter, Etsy marketplace gross merchandise sales rose 7.5% from a year earlier to $2.6 billion, while marketplace revenue increased 9.3% to $668 million.

Like many retailers, Etsy faces weak discretionary spending and intense e-commerce competition. Still, Etsy stock has gained 50% year to date, driven partly by the company's portfolio cleanup, buybacks, and valuation recovery.

To focus on its more profitable core marketplace, the company sold Reverb in June 2025 and completed the $1.4 billion sale of Depop to eBay on July 30. This has made the overall revenue and earnings hard to compare.

Comparable net income -- excluding impact from the divestment -- totaled $114 million in the second quarter, representing a growth of more than 50% from the previous year.