Fiverr cuts 30% of workforce to go AI-first amid industry transformation
- Fiverr announced it would cut 30% of its workforce to transition to an AI-first organization.
- The company aims to reinvest savings into new growth segments and improve operational efficiency through AI.
- This decision reflects broader trends in the freelance economy, highlighting the balance between innovation and community.
In September 2025, Fiverr, a prominent freelance platform, announced a significant reduction in its workforce by approximately 30%. This decision was not prompted by financial distress but rather a strategic pivot to transition the company to an AI-first organization. CEO Micha Kaufman highlighted this transformation as essential for adapting to the evolving landscape of technology and work. As part of this restructuring, Fiverr is planning to invest the savings from layoffs into new growth segments while maintaining profitability, recognizing the role of artificial intelligence in enhancing operational efficiency. As AI capabilities advance, the need for traditional roles within certain sectors is diminishing, leading Fiverr to evaluate its existing business processes and workforce requirements. Kaufman explained that the shift was part of a broader trend in the freelance economy, where companies are expected to leverage technology to improve service delivery and operational effectiveness. For example, utilization of AI for customer support has reportedly improved resolution times significantly while enhancing fraud detection through machine learning. This strategic shift has the potential to reshape how freelance platforms operate and could redefine the relationship between freelancers and the platforms they use. Fiverr's investment in AI aims to enhance the linking of freelancers with projects while ensuring quality and trust in its services. By redefining platform economics, Fiverr is positioning itself to not just keep pace with industry changes but to lead in the integration of AI capabilities. However, with this transformation comes numerous challenges, including maintaining service quality, ensuring user trust, and addressing potential regulatory hurdles that may arise with increased automation. Kaufman acknowledged the human element involved in this transition, emphasizing the company's commitment to support departing employees while fostering a sense of opportunity for those who remain. This balancing act between innovation and community engagement represents a pivotal challenge for Fiverr and others in the future of work, where technology increasingly influences how value is created and shared.