Fiverr is cutting 30 percent of its workforce and overhauling its infrastructure to focus entirely on artificial intelligence.
Quick Summary – TLDR:
- Fiverr is laying off 250 employees, amounting to 30 percent of its staff, as part of a major company transformation
- The freelancing platform is shifting to become an AI-first company with a leaner and flatter structure
- CEO Micha Kaufman described the move as a “painful reset” but necessary for long-term innovation
- The platform will continue its business operations without interruption, despite the job cuts
What Happened?
Fiverr, the popular freelance gig marketplace, is undergoing a sweeping internal transformation. CEO Micha Kaufman announced in a company-wide letter and a public investor update that Fiverr will be letting go of 250 employees, roughly 30 percent of its workforce. This move is part of the company’s mission to become an AI-first organization, integrating artificial intelligence deeply into every level of its operations.
— Micha Kaufman (@michakaufman) September 15, 2025
A Startup Mentality for an AI Future
Kaufman’s letter emphasized that Fiverr is returning to a startup-like mindset, aiming for greater speed, agility and productivity. He wrote:
The layoffs span across multiple departments. Fiverr said it does not expect any near-term disruptions to the core marketplace operations. It also reaffirmed its financial guidance for the third quarter and full fiscal year.
The move comes amid a wider tech industry trend of companies restructuring for AI readiness. Similar AI-first strategies have been adopted by firms like Duolingo and Workday earlier this year.
Not Just Talk: Fiverr’s Push Into AI
Fiverr has already introduced AI into its services including coding, marketing, customer care and fraud detection. Earlier this year, the company launched “Fiverr Go,” a program allowing freelancers to train AI models using their own work, enabling them to automate their creative processes.
This aggressive AI shift has not come without internal tension. In May 2025, Kaufman warned employees, “AI is coming for your jobs. Heck, it’s coming for my job too. This is a wake-up call.” That statement now reads more like a prophecy, especially as the company doubles down on automation.
Despite growing demand for AI gigs on the platform, some freelancers have voiced concerns. On Fiverr’s community forums, users have questioned the impact of generative AI on human creators. One user wrote, “Is AI destroying the REAL creators?”, highlighting the friction between traditional freelance work and algorithm-generated services.
Still, Fiverr seems committed to the belief that AI can unlock new opportunities, particularly in enterprise contracts, long-term projects and advanced automation categories. The company saw a nearly 15 percent year-over-year revenue increase in July, partly driven by surging interest in AI-related services.
A Painful but Strategic Reset
Kaufman acknowledged the emotional cost of the layoffs, calling it one of the “toughest decisions” in his career. He praised Fiverr’s culture as a “magical place” with a strong sense of belonging, but said this restructuring was necessary to remain competitive in a rapidly changing tech landscape.
“The resizing and refocusing effort will allow Fiverr to go after growth opportunities as a leaner organization with an AI-native infrastructure and mindset,” the company explained in its investor note.
SQ Magazine Takeaway
I’ll be honest, this is a tough one. Fiverr has always been a cornerstone for freelancers, creatives and digital hustlers. But it’s also a business, and right now, business is chasing AI. While it’s exciting to see Fiverr aiming to lead in the AI space, it’s hard not to feel for the 250 people who helped build the platform. The shift to an AI-first model might open new doors, but it also raises important questions about the future of human-led work in the gig economy. If you’re a freelancer, now’s a good time to adapt, upskill and get comfortable with AI because it’s no longer optional.
