Freelance platform Fiverr cuts 30% workforce amid AI-driven restructuring

The freelance marketplace had 762 employees as of December last year. 

Fiverr CEO Micha Kaufman, in a letter "Fiverr is going back to startup mode,", said the move aims to build “a leaner, faster” organization with modern AI-focused infrastructure, fewer management layers, and higher productivity per employee. 

He shared, "For months, I've been sharing my thoughts on how AI is reshaping not only work but also the increasingly immersive ways humans and machines interact. This will lead to fundamental changes in how societal activities are organized and how businesses operate. The speed at which technology is changing, and the possibilities it brings, are incredible, and they demand new thinking and higher velocity to stay at the top of our game."

"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," he told employees in the letter.

"While we’ve made some progress so far, we are just scratching the surface. We know there’s a lot of growth runway ahead to expand Fiverr’s use cases and drive adoption."

The cuts align with a broader trend among tech firms, including Salesforce, that are doubling down on artificial intelligence to automate processes and streamline operations. 

Fiverr, which connects freelancers with businesses for services such as design, editing, and programming, already relies heavily on automation for ordering, delivery, and payments. 

While the company has not specified which roles will be impacted, it said the restructuring will not materially affect its marketplace operations in the near term. Savings from the layoffs will be reinvested in AI and other growth initiatives. 

"To those who will be leaving us: thank you! We do not take your contribution for granted, and we plan to do everything we can to provide you with comprehensive support - generous severance, extended healthcare, career transition assistance, and personal help from our leadership team." 

Kaufman admitted the layoffs were difficult but said they were needed to keep Fiverr competitive in the long run. “This is about building a company ready for the future,” he added.

Founded with the concept of $5 gigs, Fiverr has since expanded into subscriptions and higher-value services, evolving into a global freelance marketplace.