Fiverr Switches To AI Structure And Lays Off 30% Of Workforce

The Israel-based platform Fiverr announced on Monday that it is laying off 250 employees, around 30% of its workforce. The company’s CEO, Micha Kaufman, revealed a restructuring plan to make Fiverr an AI-first company.

According to Reuters, the company had 762 employees in December 2024, and the cuts will affect positions that do not align with its new AI-focused strategy. Fiverr expects to automate systems and integrate advanced technology into its platform.

In a letter to employees, Kaufman explained that the company needs to stay “on top of the game” by adopting AI and adapting quickly to the changes the technology brings to society and business. The new business structure will align the demands of AI and require a different mindset, including “going back to startup mode.”

“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,” wrote Kaufman. “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.”

Kaufman described the decision as one of the most difficult ones he has ever made, but didn’t provide details on which job positions will be affected. He highlighted how AI has already optimized and accelerated processes in multiple projects.

“We’ve witnessed firsthand how AI can automate and streamline processes, liberate humans from manual and tedious tasks, and unlock capabilities that were historically not possible or too expensive,” added Kaufman. “As we evaluate what has been done and what can be done, we believe we don’t need as many people to operate the existing business.”

Fiverr is following the footsteps of other companies that have shifted to an AI-first approach in recent months. Last year, in November, Zoom rebranded as an AI-first work platform, changing also its name to Zoom Communications Inc. In April, Duolingo announced it had officially become an AI-first company and that it would gradually replace contractors.