Fiverr layoffs: radical pivot to an AI-focused company

The freelance services platform has announced a profound restructuring that includes the dismissal of approximately 250 employees, a figure that represents around 30% of its workforce. The decision is part of a strategic shift to become a company with absolute priority in artificial intelligence, with organizational changes that seek greater agility and efficiency.

Founder and CEO Micha Kaufman has described the process as a “painful restart” and a return to “startup mode”. The goal is a leaner company, with fewer hierarchical levels and a substantially higher productivity per employee, supported by a modern technical infrastructure designed from the ground up for AI.

The decision and its reasons

According to the CEO's public communications, the company aims to operate as a “AI-first company”: faster, flatter, and with a technological foundation designed to automate repetitive tasks and accelerate decision-making. At the same time, management emphasizes that this shift will allow the organization to focus on what provides the most value and reduce operating costs without compromising product evolution.

“We launched this transformation to turn Fiverr into a company focused in AI, with a modern infrastructure, a smaller team, and far fewer layers of management, capable of moving with greater speed and agility.”

Areas that are automated and operational changes

Fiverr has already begun integrating AI into several internal functions, especially in customer, mechanisms of fraud detection and other operational processes considered manual and tedious. The challenge is to delegate lower value-added tasks to automated systems to free up time and increase quality in key deliveries.

• User support: faster and more consistent responses, with human referrals in complex cases.
• Security and fraud: proactive filtering of suspicious behavior and automated validations.
• Internal processes: optimization of workflows and reduction of management times.

The company maintains that these measures should not materially affect the marketplace in the short term. The official commitment is to maintain stable service while technical and organizational improvements are implemented.

Consequences for freelancers and buyers

In response to community concerns, Kaufman reiterated that the business of professionals operating on the platform will not be harmed for the transition. The institutional message insists that support will be maintained to democratize access to opportunities and that market operations will continue to function normally.

Despite this, Some profiles express misgivings about the real scope of this shift, especially in the wake of new AI-powered utilities. —such as platform-integrated tool sets and assisted generators—that have raised doubts about coexistence between automation and human labor. A past advertising campaign that argued that "nobody cares" whether the work is done by a person or by AI also weighed heavily in the conversation.

Internal communication and background

Months before the announcement, Management sent an internal message warning that AI would impact all positions., encouraging teams to automate as much of their tasks as possible to increase performance. This guideline was accompanied by the idea of ​​accelerating delivery and improving quality per unit of work.

In public appearances, the CEO has argued that AI can free people from repetitive tasks and that human capabilities—such as non-linear thinking or judgment—will continue to be differential. However, these positions have been read with caution by those who fear that automation could translate into a lower need for personnel.

Staff, compensation and destination of savings

With a census of 762 employees at the end of last year, the announced adjustment —about 250 positions— equivalent to about 30% of the workforceThe company assures that the remaining teams will operate with greater autonomy and fewer intermediate layers to gain speed in execution.

Fiverr has engaged severance packages, extension of health insurance and support in the professional transition for those affected. In addition, Part of the savings from cost reduction will be reinvested in AI initiatives, with the aim of accelerating product development and modernizing technical infrastructure.

A movement in line with the sector's trend

Fiverr's turnaround comes in a context of strong Your Strategic in generative AI on a global scale, with more companies automating functions to gain efficiency. While some warn of significant occupational risks associated with this adoption, other analyses qualify the scope of these scenarios, especially in the short term, and focus on the need for retraining and adaptation of profiles.

The company's repositioning sends a clear message: Fewer layers, more automation, and higher productivity demands with a reduced team. While the new strategy is being rolled out, layoffs and the promise of service continuity are colliding with the uncertainty of workers and freelancers, who are waiting to see if the shift to AI delivers as promised without harming the platform's experience or business.