Etsy is laying off roughly 11% of its workforce, a spokesperson confirmed, as the e-commerce site that helps small businesses sell handmade goods grapples with a slowdown in consumer spending and increased competition from competitors like Shein and Temu. The cuts will affect roughly 225 employees.
Etsy has seen revenue growth slow sharply over the past three years, as the pandemic’s e-commerce boom faded and customers flocked to sites offering cheaper alternatives. It’s tried to combat the explosive growth of upstarts like Shein and, more recently, Temu, which ship ultra-cheap goods directly to U.S. shoppers from overseas, by emphasizing the quality of the items on its site.