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Restructuring and Other Exit Costs
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and Other Exit Costs
Note 17—Restructuring and Other Exit Costs
On December 12, 2023, the Company’s Board of Directors approved a restructuring plan designed to increase Etsy’s operational efficiencies, reduce operating costs, and better align Etsy’s workforce and cost structure with current business needs, top strategic priorities, and key growth opportunities (collectively, the “Restructuring Plan”). The Restructuring Plan includes an approximately 11% reduction of the Etsy marketplace workforce, which is approximately 225 employees.
Additionally, in the fourth quarter of 2023 Reverb reduced its workforce by approximately 13% to gain operational efficiencies and enable critical growth investments into 2024 and beyond.
In connection with these workforce reductions, Etsy incurred $26.6 million in charges in the fourth quarter of 2023, primarily consisting of severance and employee-related benefits. Etsy expects that the execution of the Restructuring Plan will be substantially complete by the end of the first quarter of 2024, with the majority of costs incurred during the year ended December 31, 2023.
Total restructuring and other exit costs included in the Consolidated Statements of Operations are as follows (in thousands):
 Year Ended  
December 31,
2023
Cost of revenue$5,650 
Marketing3,233 
Product development13,527 
General and administrative4,167 
Total restructuring and other exit costs$26,577 

The following table is a summary of the changes in the Company’s severance and employee-related benefits associated with restructuring and other exit costs, included in accrued expenses in the Consolidated Balance Sheets (in thousands):
Balance as of December 31, 2022$— 
Severance and employee-related benefits26,189 
Cash payments(1,849)
Balance as of December 31, 2023$24,340