A lot of people successfuly use laser cutters to etch leather and it's certainly capable of cutting thin stuff.
Thicker leather is more difficult as the cuts get choked up with carbonized material which acts as a thermal insulator. the air assist blower in the head can help clear that material. Also it doesn't smell very nice (though nowhere near as bad as laser cutting felt)
Using masking tape can help give cleaner edges.
For reference our laser is a 60 watt model if you want to Google leather laser cutting tips.
Glen
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