On August 3, 2026, the Audit Committee, acting pursuant to a delegation of authority from the Board, approved a restructuring plan intended to better align the organization with Etsy’s long-term strategic priorities, including by simplifying Etsy’s structure to improve coordination and speed of decision-making (the “Restructuring Plan”). The Restructuring Plan included an approximately 12% reduction of the Etsy marketplace workforce, or approximately 220 employees.

In connection with the Restructuring Plan, Etsy incurred approximately $33.9 million in charges in the third quarter of 2026, primarily consisting of severance payments, employee benefits, and related costs. As of the end of the third quarter of 2026, the execution of the Restructuring Plan was substantially complete.

Total restructuring and other exit costs associated with the Restructuring Plan included in the Consolidated Statements of Operations for the periods presented are as follows (in thousands):


	Three and Nine Months Ended September 30, 2026

Cost of revenue	$	4,273
Marketing	3,126
Product development	22,623
General and administrative	3,842
Total restructuring and other exit costs	$	33,864

The following table is a summary of the changes in the Company’s liability for severance, employee benefits, and related costs associated with the Restructuring Plan, included in accrued expenses in the Consolidated Balance Sheet (in thousands):


	Restructuring and Other Exit Costs
Balance as of December 31, 2025	$	—
Severance and employee-related benefits	33,864
Cash payments	(27,349)
Balance as of September 30, 2026	$	6,515