Fiverr Lays Off 30% of Workforce in Pivot to 'AI-First' Strategy

Reviewed byNidhi Govil

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Fiverr, the online freelance marketplace, announces a major restructuring, cutting 250 jobs as it shifts towards an AI-focused business model. CEO Micha Kaufman frames the move as a return to 'startup mode' amid technological disruption.

Fiverr's AI-Driven Restructuring

Fiverr, the online freelance services marketplace, has announced a significant restructuring plan that includes laying off approximately 30% of its workforce, affecting around 250 employees

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. The company's founder and CEO, Micha Kaufman, framed this move as a pivot towards becoming an 'AI-first' company, emphasizing the need for a 'modern, clean, AI-focused infrastructure from the ground up'

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Source: engadget

Source: engadget

The AI Transformation

Kaufman described the restructuring as a 'painful reset' that will result in a smaller, flatter organization

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. The CEO's vision for Fiverr includes:

  1. Returning to 'startup mode' with increased speed and agility
  2. Implementing an AI-focused infrastructure and methodology
  3. Streamlining operations and enhancing productivity

The company aims to leverage AI to automate systems and streamline operations, potentially doubling or tripling output per unit of time

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Impact on Employees and the Platform

While Fiverr assures that the layoffs won't materially impact business activities across the marketplace in the near term, the move has raised concerns among employees and freelancers

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. The company has promised severance packages and extended health insurance to departing employees

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Source: The Register

Source: The Register

Broader Industry Trends

Fiverr's restructuring mirrors similar moves by larger tech firms, such as Salesforce, which have invested heavily in AI agents and machine learning to automate customer care and logistical work

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. This trend of AI-driven layoffs has affected various sectors of the tech industry, with companies like Duolingo, Workday, and even AI-focused firms like Google and xAI implementing job cuts

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CEO's Controversial Statements

Kaufman's approach to the AI transition has been met with some criticism. In a May 2025 interview with CBS News, he advised employees to 'automate 100 percent' of their work using AI, while claiming this wouldn't make them replaceable

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. More controversially, in a June podcast appearance, Kaufman made remarks that some interpreted as dismissive of workers' concerns about job security in the face of AI advancements

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Financial Implications

Fiverr's stock price has seen a significant decline since its peak in February 2021, when its market cap reached around $11 billion. As of the announcement, the stock was trading at around $23, down from over $320 at its height

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. The company plans to reinvest part of the savings from the restructuring back into the business

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