The layer-dependent electronic band structure of transition metal dichalcogenides (TMDCs) enable a plethora of novel electronic and optoelectronic devices [1], [2]. Generally, TMDCs with various thicknesses are produced by mechanical and chemical exfoliation from bulk crystals [3], [4]. Although exfoliated flakes have proven invaluable in the understanding of fundamental physics of TMDCs, the inherent probabilistic nature of exfoliation calls for a new method that can produce high-quality flakes with the desired thickness deterministically. Here, we demonstrate atomic layer etching (ALE) with monolayer precision for tungsten diselenide $(\mathrm{WSe}_{2})$ using self-limiting oxidation to create $\mathrm{WO}_{x}$ that is subsequently removed by a dilute etch. In contrast to previous studies [5]–[7], we show that the electrical properties of the etched flakes are comparable to pristine flakes of the same thickness.