Fiverr slashes 25% of staff in AI-led restructuring

The layoffs is set to impact 250 employees as the marketplace shifts towards a ‘leaner, automation-driven model’

by e4m Staff
Published: Sep 16, 2025 12:33 PM | 1 min read

Freelance marketplace Fiverr is cutting nearly a quarter of its workforce as part of a sweeping restructuring aimed at making the company “AI-first.” The move will see about 250 employees let go, CEO Micha Kaufman told staff on September 15.

The layoffs, which follow similar moves across the tech sector, are designed to reduce management layers and build a smaller, faster organisation with AI at its core. “This is a transformation to turn Fiverr into an AI-first company that’s leaner, faster, and more productive,” Kaufman wrote in a letter to employees.

Fiverr has already rolled out AI-driven tools such as Neo, Fiverr Go and Dynamic Matching, and plans to double down on automation in areas like coding, advertising and customer care. While the cuts represent a significant downsizing, the company said its core marketplace operations will not be disrupted in the near term, with savings redirected into AI product development.

Financially, Fiverr continues to show resilience. Q2 revenue climbed 14.8% year-on-year to $108.6 million, while adjusted EBITDA rose to $21.4 million. However, active buyers slipped by almost 11% to 3.4 million, even as average spend per buyer increased 10% to $318.

By reshaping its workforce and prioritising automation, Fiverr joins a growing list of digital platforms betting on AI to deliver efficiency, investor confidence, and long-term competitiveness.