Fiverr Cuts 30% of Workforce in Strategic Pivot to 'AI-First' Model

Fiverr cuts 30% of staff in pivot to 'AI-first'

250 people now have the chance to sell their freelance services on the site ai-pocalypse Freelance services marketplace Fiverr has told around 250 staffers that they are back on the market as it pivots to having "a modern, clean, AI-focused infrastructure from the ground up." The company confirmed on Tuesday to The Register that it would lay off around 30 percent of its workforce. In an extended essay on X, founder and CEO Micha Kaufman said that AI was going to mean a fundamental rethink and that the 15-year-old freelance services bazaar is "going back to startup mode." "This transformation requires a painful reset, and as we make it, we will be parting ways with approximately 250 team members across the different departments, resulting in a smaller and flatter organization," he lamented. "We need to go back to a startup mode, with speed and agility, a flatter organizational structure, and an AI-focused infrastructure and methodology." AI offered staff the chance to "liberate humans from manual and tedious tasks," he opined, and "unlock capabilities that were historically not possible or too expensive." Kaufman promised severance packages and extended health insurance to departing employees. He is presumably also looking for a stock price boost with the announcement. Fiverr's market cap peaked at around $11 billion in February 2021 when shares were trading at over $320 apiece. On Tuesday, the stock price is hovering around the $23 point and dropped slightly after the announcement. The move shouldn't really come as a surprise to employees; Kaufman gave fair warning. The founder sent out an email to staff in May saying that AI was coming for everyone's jobs. He warned staff that they need to use AI to replace the mundane tasks of their jobs - wanting people to automate "100% of what they are doing," he told CBS. "I'm looking at this from an executive standpoint is we were given superpowers, but this should reflect in how people work. So my expectations are double or triple the output per unit of time, and the same for the quality per unit of delivery," he said. "AI actually forces us to rediscover our humanity, the things that we are special in the special attributes of every person." ®

Online marketplace Fiverr to lay off 30% of workforce in AI push

Sept 15 (Reuters) - Israel-based Fiverr International (11V.F), opens new tab is laying off 30% of its workforce, a company spokesperson said on Monday, as the online services marketplace doubles down on artificial intelligence to automate systems and streamline operations. The cuts, which will affect 250 employees, are a part of a restructuring plan announced by Fiverr's CEO Micha Kaufman geared towards investing heavily in AI and incorporating the technology into the company's platform. The company had 762 employees as of December last year. "We are launching a transformation for Fiverr, to turn Fiverr into an AI-first company that's leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers," Kaufman said in a letter to employees. The layoffs mirror similar moves by larger tech firms, such as Salesforce (CRM.N), opens new tab, that have spent a significant amount of resources on AI agents and machine learning to automate customer care and logistical work. While it isn't clear what kinds of jobs will be impacted, Fiverr operates a self-service digital marketplace where freelancers can connect with businesses or individuals requiring digital services like graphic design, editing or programming. Most processes on the platform take place with minimal employee intervention as ordering, delivery and payments are automated. The company's name comes from most gigs starting at $5 initially, but as the business grew, the firm has introduced subscription services and raised the bar for service prices. Fiverr said it does not expect the job cuts to materially impact business activities across the marketplace in the near term and plans to reinvest part of the savings in the business. Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Fiverr is laying off 250 employees to become an 'AI-first company'

Gig economy platform Fiverr is laying off 250 employees as it pivots to being an "AI-first company," CEO Micha Kaufman shared in an essay on X. The move affects around 30 percent of the company's staff, The Register writes, and it's not uncommon among tech companies in 2025. Duolingo announced similar plans to become "AI-first" in April. Kaufman describes this process as returning to "startup mode" and writes that his ultimate goal is to turn Fiverr into "an AI-first company that's leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers." Part of the justification Kaufman offers for why Fiverr doesn't "need as many people to operate the existing business" is that the company has already integrated AI into its customer support and fraud detection programs. The first sign that Fiverr might justify layoffs with AI came when Kaufman was interviewed by CBS News in May 2025 about the danger the technology posed to employees. Kaufman specifically advised employees to "automate 100 percent" of what they do with AI, while also claiming that wouldn't make them replaceable because they were still capable of "non-linear thinking" and "judgement calls." That advice doesn't seem like it was ultimately helpful for Fiverr's own employees. The company's cuts affect fewer people than a larger firm like Workday, who announced plans to eliminate 1,750 roles in February 2025. Regardless of the size of the company or its level of investment in AI, though, layoffs have the same effect: More work has to be done by fewer people.

Fiverr to cut 30 percent of workforce in AI pivot

Fiverr, the online freelance gig marketplace, is planning a major downsizing of its staff as the company pivots to AI, the company's CEO announced in a jargon-filled letter to employees. As reported by the Wall Street Journal, the layoffs will eliminate about 30 percent of the Fiverr workforce. "The resizing and refocusing effort will allow Fiverr to go after growth opportunities as a leaner organization with an AI-native infrastructure and mindset," Fiverr wrote on its investor relations page. Fiverr first launched in 2010 as an online gig marketplace where writers, musicians, visual artists, and other freelancers could offer their services for just $5. Soon after, Fiverr expanded its offerings, allowing freelancers to provide multiple tiers of services and charge more than $5 for their gigs. In the Sept. 15 letter to employees, Fiverr CEO Micha Kaufman also said that the changes needed to become an "AI-first company" will be "painful": Today, we are launching such a transformation for Fiverr, to turn Fiverr into an AI-first company that's leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers. This transformation requires a painful reset, and as we make it, we will be parting ways with approximately 250 team members across the different departments, resulting in a smaller and flatter organization. This is possibly one of the toughest decisions that I have had to make, especially as Fiverr is such a magical place with a strong sense of belonging and mission-driven culture. Recently, Fiverr has begun promoting AI use among its freelancer community. Earlier this year, for example, Fiverr announced a new program called Fiverr Go, which allowed its gig workers to train AI on their own work in order to automate their creations with AI. The company promoted this new AI service through a series of ads featuring character actor Brett Gelman, best known for his role on Stranger Things. In a company-wide email from May of this year, Kaufman bluntly warned his staff about the company's pivot to AI. "AI is coming for your jobs," Kaufman wrote to his employees. "Heck, it's coming for my job too. This is a wake-up call." In recent years, Fiverr's community of freelancers has criticized the growth of users on the platform who are fulfilling gigs with generative AI. "Is AI destroying the REAL creators?" asked one freelancer on Fiverr's community forums last year after noting their business on the site had been down. Fiverr appeared to downplay concerns about AI in an ad it released in October 2024. The ad features a cheery musical number called "Nobody Cares," referring to Fiverr's claim that nobody cares if a freelance artist or creator uses AI. Now, in the pursuit of AI, Fiverr will lay off 250 of its employees.

Fiverr Lays Off 250 Employees and Pivots to 'AI-Focused Infrastructure' | PYMNTS.com

"We need to accelerate this mode of work," Kaufman said in the letter. "We can and should dream bigger and build faster, using this moment to build what's next for Fiverr on a modern, clean, AI-focused infrastructure from the ground up." In a note to shareholders that accompanied the posting of the letter, Fiverr said it does not expect the restructuring plan to impact business activities on its marketplace in the near term. Fiverr added in the note that it reiterated its guidance for the third quarter and the fiscal year. In the letter to employees, Kaufman said the company's freelancing platform is more relevant than ever as the labor force becomes more fluid, human skills evolve and AI blurs "the line between products and services." "Millions of businesses around the world already depend on Fiverr to stay competitive, but we know there are even larger opportunities that we have yet to tap into -- AI applications, enterprise budgets and long-term projects," Kaufman said. "To aggressively pursue these opportunities, we need to go back to a startup mode, with speed and agility, a flatter organizational structure, and an AI-focused infrastructure and methodology." Fiverr said in July that it saw a nearly 15% year-over-year increase in revenue, driven in part by what it called a "surging demand" for AI-related services in categories such as AI agents and workflow automation. "With AI fundamentally changing how humans and machines interact, it allows many nontechnical entrepreneurs and professionals to build and leverage the technology," Kaufman said July 30 in prepared remarks for the company's quarterly earnings call. "At the same time, we are increasingly seeing the gaps between on-the-shelf AI tools and the real-world problems our customers are trying to solve."