Fiverr to Cut 30% of Workforce as It Pivots to AI-First Strategy

Israel-based freelance services marketplace Fiverr International announced on Monday that it will lay off 30% of its workforce, amounting to about 250 employees, as part of a major restructuring focused on artificial intelligence.

The move, confirmed by a company spokesperson, is aimed at streamlining operations and embedding AI more deeply into Fiverr’s platform. The company had 762 employees as of December 2024.

“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,” CEO Micha Kaufman said in a letter to staff.

The decision mirrors trends across the tech sector, with firms like Salesforce also investing heavily in AI agents and automation to reduce costs and increase efficiency. Fiverr’s marketplace largely functions with minimal employee involvement, automating processes such as ordering, delivery, and payments between freelancers and clients.

Founded on the concept of $5 “gigs,” Fiverr has since expanded into higher-value services, including subscriptions and premium offerings. The company said the cuts will not materially affect its operations in the near term and that it plans to reinvest savings into growth initiatives.